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Minutes - 07/06/2022 - Sports Core Advisory CommitteeSports Core Advisory Committee Meeting July 6, 2022 6:30pm Call to Order The July 6, 2022 Sports Core Advisory Committee Meeting held via Zoom and live, in the Upper Level Conference Room of Village Hall, was called to order by John Anos at 6:32pm PRESENT: In Person - John Anos, Jim DePhillips, Melissa Martin, Christy Dolan, Mike Stevens, Kathy Miller (arrived 6:50), Frank Scarpiniti ABSENT: Lara Barber IN ATTENDANCE: In Person –Village Manager Greg Summers, Executive Assistant Connie Reid, Golf Course Superintendent Sean Creed, Finance Director Marilyn Fumero, Trustee Michael Manzo, Trustee Larry Herman, Trustee Suresh Reddy, Village President Gopal Lalmalani and Director of Public Works Rick Valent, Dave DiTomasso from PAM Approval of Minutes October 19, 2021 Motion to approve the October 19, 2021 meeting minutes made by Melissa Martin seconded by Frank Scarpiniti. All in favor, no one opposes. Minutes approved. Public Comments There are no public comments. Financial Update Trustee Herman begins by giving a little history of the improvements at the Club and the debacle with the pool renovation, which the Village attorney is working on obtaining restitution for all the losses. He goes on to say that the Village realizes that they need to change the financial picture going forward and that the Village can’t continue to subsidies the pool and tennis operations especially because the majority of the members are non-residents. He moves on saying that the Club has a new online presence with a new website and booking software. He touches upon the agreement with Chicagoland Pool Management and the possible need for an onsite Village employee. Continuing he mentions the staffing issues some other Clubs have had, and that the B&T is fortunate to have CPM, but does think the onsite Village employee is key to a better Club experience. Trustee Herman shifts to Tennis and says that the members like Jim Lezatte and that he is doing a decent job and Tennis has a lot of deferred maintenance. The conversation shifts to membership rates and the possibility of raising rates in the future. He touches on the membership numbers being very strong this year, though we have 70% non-resident members. He states that MINUTES OF THE JULY 6, 2022 MEETING OF THE SPORTS CORE ADVISORY COMMITTEE OF THE VILLAGE OF OAK BROOK HELD IN PERSON IN THE UPPER LEVEL CONFERENCE ROOM OF VILLAGE HALL, APPROVED AS WRITTEN ON DECEMBER 1, 2022 there is plenty of room for raising rates in the future. He then goes through some financial figures comparing operations this year to the Park District’s operations and projections for this year and the future. And goes through staff time and other expenses that need to be allocated to the Sports Core. He would like to see Bath & Tennis and Golf each stand on its own and be profitable. Continuing he states that the revenue goals should include having money to set aside for capital improvements. Moving on he speaks of membership numbers, the need to cap them, price, increasing resident numbers by offering non peak time limited memberships and the need to start planning for next year. Conversation ensues regarding amenity vs. business model. And how to make it more equitable for residents. Melissa Martin has some questions regarding management responsibilities and who is in charge of garbage clean up, locker rooms and daily maintenance and social events. The conversation shifts to the benefits of contracting with CPM and possibly signing a contract for next year, contacting new families to let them know about the B&T and the new chairs that have been ordered. Trustee Herman explains there is an issue with making more deck space by concreting or paving the area between the pools, stating that it’s an IDPH bather load problem and the Club is unable to make more deck space and possible alternatives. Food & Beverage Operations Village Manager begins the Food & Beverage operation discussion by giving a little history of recent activities. The Village went out to bid on the Golf, Poolside Café and Banquet operations and received one proposal. The Village counter proposed, and then made mention that the current operation had the first right of refusal. Jeff Kawucha accepted that offer and agreed to leave his Head Golf Employee status to become an independent contractor in order to manage food and beverage and golf operations. Greg Summers provides profit and loss information on each of the three operations noting that the B&T Clubhouse consistently loses money. VM Summers goes through the pros vs. cons of the different scenarios for managing the food and beverage services and passes out financial data to corroborate each one. Someone asks why leaving things the way are is not an option. It is stated that the operation continually loses money. Conversation shifts to separating the operations and eliminating or changing the part that loses money (the banquet facility) but leaving the golf food and beverage as is. Trustee Manzo is adamant that they need to be combined and that leaving the B&T Clubhouse empty is not an option because there would still be expenses that are tied to it. Mike Jerich asks why the B&T Clubhouse can’t be repurposed. Trustee Manzo retorts that they have been talking about that for eleven years and nothing has happened. Jim DePhillips suggests leaving the golf and pool food & beverage as they are and give Millhouse just the banquet facility. He goes on to say that having Jeff convert to an independent contractor will change the culture at the Golf Club. VM Summers clarifies that the B&T Clubhouse has been on a trend to lose less and less money every year and may be able to become profitable. Conversation ensues regarding the agreement that’s on the table and the plausibility of it making money. If the vendor takes 50% of the room rental fees and only pays 10% in commission that’s less than the Village gets now. Lively conversation ensues, regarding what to do with the B&T Clubhouse. President Lalmalani asks why they would try to change the golf operations when it’s making money and the golfers are happy. Jim DePhillips brings up the fact that the pool, tennis and golf can be considered amenities to the residents of Oak Brook, but the banquet facility does not get used by residents and should not in any way be considered an amenity. And, of the weddings held at the B&T none of them were for Oak Brook residents, and they are in direct competition with the other banquet facilities in the Village. Conversation shifts to what the costs would be to cap the utilities, tear the building down and grass over it as opposed to repurposing the building. Even with the minimal construction that would need to be done to save the locker rooms, bathrooms and maybe office space it would still improve the balance sheet. Mike Jerich asks if B&T Clubhouse is an amenity or a business, if it’s an amenity then leave it open and let it lose money, if it’s a business then repurpose it or shut it down. Conversation continues regarding how the facility can be repurposed, the nuances of golf food and beverage operations, food quality, margins and various other topics, Trustee Herman brings up the parking issue and suggests that in order to keep the B&T Clubhouse operating there needs to be a permanent parking solution, which will increase capital outlay. Conversation then shifts to the other capital projects that will need to be done at the Clubhouse over the next 10 years. Mike Jerich then suggests bringing the question to the residents, stating that if they want to keep the Clubhouse operational it will need a certain amount of money put into it, which in turn will cost each Oak Brook resident a certain amount of money. And goes on to say that even if they put $250,000 into the parts of the building that aren’t torn down, that’s less money than it loses in one year. Rick Valent shares that he and his team have been working on the 5 year plan, and runs through the projects that have already been done and more importantly the ones that will need to be completed, which will be in the hundreds of thousands of dollars. Mike Jerich again suggests bringing the question to the residents. Trustee Manzo agrees that putting a referendum on the ballot in November is great idea. It is then confirmed that the Event Coordinator is not selling dates for 2024. Conversation continues regarding what needs to be included in the non-binding referendum question. It is agreed that it needs to include the amount it will cost to repair/maintain the building, the amount it will cost to tear down and construct the areas that will stay, and the amount the residents will need to pay. The committee’s recommendation is to have a non-binding referendum regarding the future of the B&T Clubhouse. The outcome of that vote would then dictate the next steps for the food and beverage operations. John Anos thanks the Village for putting up the lights in the parking lot at the Golf Club. He then asks if there will now be money to put into the Golf Course for things like sand traps. VM Summers says that there has been conversations about what the golf course needs and that since the pool is pretty much done the golf money should stay at the golf course and be used there. Sean Creed says that bathrooms and bunkers will be in the budget for next year. And then touches upon the steel edging around the ponds which is in the process of being replaced. Adjournment Motion to adjourn the July 6, 2022 meeting of the Sports Core Advisory Committee made by Melissa Martin seconded by Frank Scarpiniti. Meeting adjourned by 8:30pm. ATTEST: ________________________ _____________________ Connie Reid Date Executive Assistant Village of Oak Brook