1 PERIDIA GOLF AND COUNTRY CLUB

Board of Director’s Meeting October 27, 2014

MINUTES

President David Strack called the meeting of the Board of Directors of the Peridia Property

Owners Association, Inc. to order at 1:30 p.m. Master Board members present were: Dennis Campbell, Bill Handy, Don Kirkpatrick, Dave Miller, Andy Olsen, Gene Stang, and Phil Vernieri. Quorum was met.

Not in attendance was Gene McShea. Rob Brown (GM) also attended.

Recognition of the Audience President Strack, thanked the audience, and read the new rules for audience participation, which were written at the top of the agenda. It reads: Members are welcome to attend Board of Director Meetings. Members attending the meeting will be asked to sign an attendance roster. The member will be limited to a three (3) minute comment after a motion has been made and seconded and before a vote is taken. You are only allowed to speak on that issue at that time. At the end of the business meeting and before adjournment you may speak on a topic of concern for three (3) minutes. We will be using a timer and will tell you when you have 15 seconds remaining. Additions and Deletions

Director Miller added Item 9 – Restaurant/House Committee. No further additions or deletions were requested. Approval of Minutes A motion to approve the September 22, 2014, BOD minutes was made by Miller, seconded by Vernieri. Director Vernieri offered a correction as to the date of the October BOD Meeting. The date was changed from the 28

th to the 27

th. The motion was approved unanimously.

Treasurer’s Report

Dennis Campbell asked for questions and then pointed out a few items in his Treasurer’s report. The issue with the Fairway Trace II property continues to move slowly through the foreclosure process being pushed by the lender for this property. We are talking with our attorney about changing the Peridia Documents so that a similar situation will not occur in the future. Changing the documents will be a challenging process. Director Campbell will get the legal process started for changing the docs. General Manager’s Report 1. Liquor License Proposal: Rob Brown talked about changing our liquor license from a 4COP

Restaurant license to an 11CGPC Golf Club license. The change would enable the bar to be open without a fully staffed kitchen. It would allow the bar to be open 7 days a week. To qualify for the Golf Club License, we need locker facilities, 18 holes of golf and a full bar. We have those facilities on site, but would need to make some other arrangements for storage, for the maintenance shop, and for parking the maintenance cart.

Cost of the license is yet to be determined. We would not be considered a restaurant, yet we’d still be open to inspections from the state.

Director Campbell added that utilizing the current maintenance garage, as a storage area would allow Peridia to store a “Hot Box” there. It would allow us to have large plated meals, which our current kitchen cannot handle. Campbell recommended that we solve some of the constant concerns of Peridia members by investing a little money.

2 Director Stang requested concrete costs and plans with facts before we vote on it. GM Brown

would like to see the BOD to act before the current restaurant license needs to be renewed in January. Delaying till after January would require new fees for the Golf Course License and loss of fees just rendered for the Restaurant License. This item will go no further without hard facts on costs, and a description of all ramifications of GM Brown’s proposal.

2. Golf Rates: The second item on Brown’s report was Golf Rates for the remaining months in

2014 and for January to April of 2015. A motion was made by Director Kirkpatrick and seconded by Director Olsen to accept the rates as presented. There was some further discussion about the cart fee. It was suggested by Director Campbell that Director Handy sit down with Mitch Riley, our Pro, and Valerie Funk, our bookkeeper, to discuss how greens fees and cart fees are calculated before May. When discussion ended, the motion passed unanimously.

3. Food and Beverage Policy Proposal: GM Brown’s third item provided a new policy relating

to the food and beverage minimum.

It reads: In an effort to maintain quality and safety as well as the best service possible to all of

our residents the Master Board has established the following rules:

1) All residents with an outstanding balance remaining on their minimum can contact the Food and Beverage Manager to place any order larger than fifty dollars before May 15th. These orders will be treated like an event and must be received seven days before requested day of pickup.

2) Raw food will not be available for to go orders or any order, i.e. uncooked steaks/raw meat.

3) We do not have a package goods license for alcoholic beverages and by law cannot offer this as an option.

These rules will allow for the chef and the F&B manager to plan and order supplies for larger orders without shorting the dining membership each day.

After discussion a motion was made by Director Miller and seconded by Director Kirkpatrick to

accept the policy as written. The motion passed unanimously.

4. Housekeeping: The final item in GM Brown’s report was about outsourcing Peridia’s housekeeping services in order to save money in our budget. He feels he can save Peridia $20,000 per year by contracting with Jan-Pro Cleaning Systems of Manasota.

Director Olsen made a motion to accept GM Brown’s request to outsource housekeeping services. Director Vernieri seconded the motion. Director Campbell asked that we discuss this item at our executive session, as it is a personnel issue.

Director Stang made a motion, which was seconded by Director Miller, that we table the topic, until after the executive session which will follow this meeting. The motion passed unanimously.

Board Matters 1. The Pump House Roof: The current roof leaks, and the wooden trusses are rotting. Ray Bartels,

Golf Course Superintendent, suggested that we do something in the immediate future to protect the pump and electrical equipment. He felt that doing nothing would not be wise. Director Kirkpatrick reminded the BOD that we already passed a motion to put new asphalt shingles over the current roof structure.

The board directed GM Brown to have new shingles installed on the pump house.

2. The 18th

Hole Erosion: The Board discussed fixing the shore erosion around hole 18. American Shoreline Restoration Inc. provided the board with a different option to fix the current problem of water run-off down the west side of the 18

th fairway, as compared to the proposal of Duncan

Seawall, Dock and Boat Lift, LLC. A 30-year guarantee comes with American Shoreline’s proposal.

3 Duncan provides more of a rock, wood, or concrete seawall approach, while American Shoreline rebuilds the shoreline with geo-tube, a polypropylene material, which creates a more natural grassy look.

The Southwest Florida Water Management District, unofficially nicknamed “Swiftmud” or SWFWMD, is one of five regional agencies directed by Florida state law to protect and preserve water resources. American Shoreline will deal with “Swiftmud” for us. They will acquire the appropriate permits and guarantee that their work meets the required specifications.

We need to fix the area from the rip-rap rocks on the west side of hole 18 to the black pipe, and the area on the east side under the bridge which has eroded to the point of drain pipes being visible under the bridge. Ray Bartels was directed by the BOD to get two bids, one for fixing both areas including addressing the rip-rap area that never really worked properly, including a guarantee that the drainage will work properly, and a second bid for the area under the bridge.

3. Signage for the Tees: Director Stang showed pictures of the tee signs, and mentioned that we will

have all the signs and mounting posts in our possession by the end of next week. The old trashcans need to be replaced in the near future. Ray Bartels will meet with Director Stang to plan out which trashcans will be purchased, where and how to mount them.

4. Landscaping: Director Kirkpatrick will be meeting with the landscaping company shortly and requested the amount of funds left in his budget. Treasurer Campbell mentioned the number $500.00 which seemed to satisfy Kirkpatrick. There was a small misunderstanding about the flowerpots that Director Olsen’s committee has been placing around the course. Members donate them, but since flowers need to be replaced from time to time, the committee has been selling 50-50 tickets to support their efforts. No money comes from the Master Budget.

President Strack was concerned about the landscaping from Peridia Boulevard to Route 70.

Director Kirkpatrick will get together with Ray Bartels to plan out removal of old bushes and planting of new landscaping. Kirkpatrick stated that some of the dead plants belong to the Peridia Office Park. GM Brown stated that he had a phone number of a contact at the park and assured Kirkpatrick that the Office Park will be glad to have us clean up the area.

5. Water Levels in the Lakes: Basically if we fix the edges of all the lakes the water level will once

again be deeper. It’s might be possible to raise the spillways and increase the depth, but we’d need SWFWMD permission. We are going to wait and see if the process with American Shoreline Restoration Inc. changes the depth. GM Brown will make sure Handy gets the Diagram from American Shoreline Restoration Inc. that shows how the lakes will be brought back to original size. After the Long Range Planning Committee finishes the Capital Reserve Budget, we will be able to see how much money is budgeted for fixing the lakes.

6. Boxes of Sand on Tees: Director Handy asked if it would be helpful for member to put sand in the divots being created on the tee boxes. Ray Bartels offered numerous reasons why we removed the sand from the tees several years back. They are:

a. Improper sand placement will mound the tee boxes over time. b. Sand that is not pressed down properly with the foot will dull the bed knives and reels on

the mowers. Bed knives are $50 and reels are $300. c. Once blades are damaged, they don’t cut the tee boxes proficiently. d. The cost of boxes, one, two, or three on each tee mounts up. e. It takes additional time for workers to move the boxes each time they move the tee

markers. f. All the boxes have to be filled with sand … more labor.

Handy was more than satisfied with Bartels’ explanation.

7. Hole in One: Handy wanted to know where we stand on getting the company out to install the equipment. GM Brown established that Mitch Riley, the Pro, is taking care of it. Riley has made

4 calls and sent emails, but has not yet interacted with the company. Riley will continue trying to make contact.

8. Nine and Dine Menu and Prices: Handy feels we need to give more entrée choices so that more members will be willing to join Nine and Dine. If a husband or wife doesn’t like the entrée, they won’t come. Yes, the buffet has two entrées, so it might be better. What alternatives can we try to improve attendance? Handy would like to have a Nine and Dine Menu ready so that when Members sign-up to play, they could pick what they want to eat off the menu.

GM Brown states that our wait staff doesn’t make enough money if the meals are less than the $17 he charges. The Service charge per person is $2.69. He’s already giving Members a break on the price of the meals since the budget calls for the meals to cost $25.97. The Service charge per person is that case is $4.09. If staff doesn’t get a fair amount of tip money, they won’t want the work.

Brown claims trying to run a full Grill menu for golfers and a full dinner menu for walk-in members just isn’t practical. Brown states the kitchen’s size does not allow for what Handy wants. President Strack thinks we could offer up to five items, which could be prepared while golfers, are on the course, if we bought the hotbox, which could keeps, the meals warm.

In the heaviest season, Nine and Dine can accommodate 60-72 players. We haven’t had a waiting list for N & D, so we need to attract more players. We don’t fill it. Mitch Riley states that as a social event, it gives new members a chance to meet new people with the potential for becoming more active Peridia Members.

Director Miller wants to know if we had the hotbox, how many items could be on the menu. Brown wants/needs a week in advance to order appropriate number of meals selected by Members. He feels three items is the max for a Nine & Dine menu. We could have each menu for a month, and then change it to a different menu of 3 items.

Director Stang thinks we ought look at our pay structure if staff doesn’t want to work if they must worry about tips to make a decent wage. Director Olsen questioned why Service Charge for Nine & Dine is 20%. Brown stated that a previous Master Board put in place that all Member Events would be 20%. He had no explanation as to why.

A lot of ideas were discussed, yet no decisions made.

9. Restaurant/House Committee: Director Miller has a committee including, Shirley Ambrose, Kay Mawhorter, Joanna Cameron, Terri Petti, Gene McShea. Thursday is the next meeting and GM Brown will also attend.

After talking with GM Brown, Miller claims there are five options for this restaurant as follows: a. Close the restaurant b. Outsource the restaurant c. Change the kitchen d. Do nothing e. Tweak the Restaurant with some new ideas.

Miller claims GM Brown is under pressure to meet all the different wants/needs of Members. Committee Goals:

a. Long Term - Turn Palm Room into a bar b. Short Term – Run an experiment. Turn our current bar area into just a Lounge for

three months. No Cards, no mah Jong, just a bar. Grill Food if possible. Set hours for 6-7 days a week. See if we can get Public and Residents to frequent our bar.

Problems when running this place: a. Currently, prices are too high. b. 18% put on a pitcher of beer at the bar c. Fine dining isn’t always needed. d. Setting up and taking down tables is labor intensive. e. Can’t set up certain areas because they are used for exercise. f. Current License has limitations. g. Number of employees maybe insufficient. h. May need another bartender.

Director Miller will present a more detailed plan at the next meeting.

5 At this point the BOD is moving to executive session. The audience exited. Director quickly requested that GM Brown provide him with a list of Peridia’s Dues for the years 2000 – 2014 inclusive, by Thursday, October 30, or ASAP. Brown confirmed the wish. Brown was asked to remain nearby, but was dismissed from the executive session.

Executive Session Held on a Personnel matter. Return to Master Board Regular Session President Strack called the regular session to order at 4:10 PM.

Director Stang previously made a motion, seconded by Director Miller that tabled Director Olsen’s motion to accept GM Brown’s request to outsource housekeeping services. The motion passed unanimously.

Director Campbell made a motion to remove his request to table Director Stang’s motion.

Director Vernieri had seconded the motion. The motion passed unanimously. The motion still on the table was Director Olsen’s motion that was to accept GM Brown’s request to outsource housekeeping services. Director Vernieri had seconded the motion. President Strack called for a vote after reviewing Olsen’s motion. The motion passed unanimously. GM Brown is instructed to:

a. Be careful to explain our move with the appropriate terminology. Peridia has decided to “outsource our Cleaning Services.”

b. The employee is just being laid off. c. The severance package is to include:

1. Accrued vacation days 2. One month salary 3. One month health coverage

Adjournment

A motion to adjourn was made by Director Vernieri, seconded by Director Handy, and approved unanimously.

Next Board Meeting:

Scheduled for November 24, 2014. The 2015 Budget Vote is scheduled.

Submitted by:

William L. Handy Jr. Master Board Secretary.