I hope you continue to stay dry as the rain continues to fall. I have a few updates for you.
Change to Club’s “Profit Center” Financial Model
I’m happy to report that the Board, in consultation with Club Management and Directors, has approved a small, but fundamental change to the Club’s existing financial model. From now on, the annual excess proceeds from each Club department—after all compensation expenses have been paid—will flow into the Club’s General Operating account. The Board, Management and Directors believe this change will align Club operations with the Club’s Mission, Vision and Values as well as minimize perceived conflicts between Members and Departments.
Our former “profit center” model was developed about 10 years ago, when the Club hit rough financial times. Desperate to curtail operating losses, the Board implemented an “eat-what-you-kill” approach, which established the Fitness, Aquatics and Tennis departments as three individual profit centers. Under that model, the departments and their incentives were designed to encourage Department Directors to operate their individual departments at a profit. The profits from each department then remained in the department’s budget, available for department-specific projects. Only the Café and Youth & Family departments were not profit centers; their profits or losses flowed into the General Operating account.
Many of you have asked why a Member-owned club has profit centers. Our research found no other Club with a financial model similar to the profit center model. Furthermore, the profit center model generates tension for Department Directors and for TPC Members. For instance, some Directors felt they were measured solely on their Departments’ profits instead of on what they did to serve the Membership and improve the Club. Meanwhile, some Members felt the model encouraged Directors to value department profits more than Members’ overall Club experience. The Board felt that the Club’s interests would be best served by making this change. No other parts of the Club’s financial model will be affected.
Staff incentives and department specific projects will not go away, but will be more focused on fulfilling the Club’s Mission, Vision and Values. To that end, we have also implemented a Club Staff appraisal system that ties staff performance to fulfilling the Club’s Mission, Vision and Values. This appraisal system weighs a variety of performance criteria, including member satisfaction and happiness and financial performance.
Main Pool Status
Between January’s flood and this month’s heater failure, it’s been a rough year for our pools. I want to apologize for the inconvenience caused by the main pool’s closure for the last two weeks. Although, the heater for this pool was installed seven years ago, and was expected to last eight to ten years, it didn’t make it. Addressing the failed heater has not been easy; much of the time has been spent researching the best options, which demanded significant staff time. Jerry worked on this even while on vacation. We not only are purchasing a heater that should last longer, but also are taking steps to avoid unexpected future shutdowns.
Celebrating Art in the Café
We hope you’ve enjoyed the artwork gracing the walls of the Café and Board Room over the past few months. Kudos goes to the Club’s new Art Curator, Member Marine Strage, a French-born artist who moved with her family four years ago from London to Belvedere. To date, the Club has organized two exhibits: one by local artist Elizabeth Geisler and the other by our own Coach “Nice” Mike Magruder. This month, Marine is exhibiting her own collection of paintings, “Life Force,” on display until March 31st.
Join us to celebrate Opening Night of Marine’s exhibit on Wednesday, March 8th from 5 to 7pm. The event promises to be a tasty treat, with complimentary wines and our Chef Jameson’s new selection of hors d’oeuvres. Please RSVP to Juliana (JulianaI@tiburonpc.org) by Thursday, March 2nd.
Update: Lower Tennis Court Project approvals delayed
Review by the Town for the Lower Tennis Court Project has been delayed likely until the end of Summer 2017. Because the Town of Tiburon did not properly notify our neighbors about the meeting, the Town’s EIR Scoping Meeting, originally scheduled for January 25th, will be re-scheduled for a future date. Once the Town completes a revised Preliminary Environmental Study, the Town of Tiburon will notify neighbors about the rescheduled EIR Scoping Meeting—the meeting should occur in about six weeks. I will keep you posted. We are proceeding with design work for utilities and buildings.
As always, the Board, Jerry and I welcome your comments or suggestions.
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