FAQ

Please understand that the ballot includes a proposal related to the Club incurring debt. It’s important to clarify that a vote of YES, in no way obligates individual members to take on debt. A vote of YES simply provides other members the option to utilize debt as a portion of their assessment obligation. Only those members who elect to use debt will be obligated to pay the interest and principal required to retire the debt.

*Note, the proposed debt is "dollar for dollar" debt to offset members electing to finance. The Club will initiate the debt, which based on the survey results, is expected to be approximately $10M but not to exceed $15M. We will only borrow what is needed to fund the amount that those members who request the financing option require. The debt will be partitioned out only to those Members who select the financing option.

There will be no impact on monthly club dues for any other Club Members. Those who select financing will have a separate line item on their individual dues statement and be required to sign a note for the payment. As noted above, any remaining assessment debt owed at the time a membership is sold is required to be paid upon the sale of the membership.

The $2 million referenced assessment is included in the current facility expansion and renovation project. It is not a separate assessment.

The goal here was to show the members the actual conceptual design.

I think our best answer at this point is that we are evaluating various options for exiting members to recover some portion of the assessment. We hope to finalize prior to the members vote.

Thank you for your note.

The plans for the North end are nearing completion and will be provided to the Membership prior to the January vote.

Combining the Snicky snack and new restaurant was discussed extensively however it was determined that we could not accommodate the traffic flow at staging, and we felt it was confusing to combine “free” and “paid” food. Included in the facility plan is a placeholder of $550,000 to upgrade the Snicky snack facility.

Combining the Snicky snack and new restaurant was discussed extensively however it was determined that we could not accommodate the traffic flow at staging, and we felt it was confusing to combine “free” and “paid” food. Included in the facility plan is a placeholder of $550,000 to upgrade the Snicky snack facility.

Debt originated by the Club would be Club debt and any assessment owed to retire that debt, would be owed by members at the time (including those on the resign list).

The member vote on the assessment will be in January. That is what we have said repeatedly. That is the only vote.

The survey will be released shortly and provides ample opportunity for member feedback.

1) the required quorum under the bylaws is 40%. A majority of the quorum of the member vote could determine the outcome. Club voting has previously been robust, and we have no reason to believe we will not have a significant majority of the membership participate.

2) As described at the presentation and in numerous member communications, feedback to the survey will dictate voting structure.

3) The increased payment options for the assessment are detailed in yesterday’s communication along with some possible project financing options. These will also be in the members survey.

As for the pool grill, a communication from that committee went out yesterday. Please read it. There are many excellent reasons that the proposed pool bar and grill would be a valuable addition to our club amenity package.

While the Board has made no final decision on bringing an assessment to a member vote, and certainly recognize the potential nuisance of having two assessment votes within a period of 120 days, the option remains viable.

The Membership was informed at the April, 2023 annual meeting that the Board intended to fund the kitchen renovation from funds on hand, and then assess the members for the cost. We have proceeded under that plan.

The cost of the kitchen expansion and renovation has grown from approximately 2.5 million to 3 million as explained in the member communication. While that in itself is manageable, as we communicated we also need to be prepared to fund the pump station replacement cost of 1.25 million. Obviously two extremely critical items.

The Club currently has approximately five million in cash and investments. Reducing that by 4.25 million causes concern that we could be tight on cash should any other unforeseen expenses arise as well as us then being forced to liquidate our investments. It does not seem prudent to put ourselves in that position so splitting the assessment into two, is under consideration.

By proceeding with a $10,000 assessment sooner than later, we would be certain that the Club has adequate funds on hand should, if for any reason the planned December member assessment vote were delayed.

We recognize it is less than ideal but when weighing the lesser of the evils, maintaining strong Club solvency seems the better decision.

The parties have agreed to a mediation date of September 27th. Our legal committee and attorneys are preparing for that hearing.

The Board has been clear that it does not plan to utilize any portion of our growing Capital Reserve Fund to permanently fund any portion of the current work. It has always been the plan to assess for the kitchen work at some point. Please see the other posted responses for additional explanation.  

The transition landscape remediation was funded in part by the $5000 member assessment t two years ago, and the remainder from operating funds or ordinary capex.  No portion has been charged to our Capital Reserve Fund. 

As you are aware, the Club was transferred no reserve funds from the Developer at Turnover. We are working hard to grow that fund for future Club needs. 

The current proposed assessment would have been a part of the major facility assessment; however we have no idea at this point what that figure will be. There will not be overlap in the two assessments.

There are a handful of non-equity founder membership conversions that are not subject to assessment as well as sports members.

Board preference is to limit to two assessments while building capital reserve funds as quickly as possible to minimize the chance of future assessments. Unfortunately, no guaranties! We have a facility with a lot of deferred maintenance. Much will depend upon what the members approve as to the facility project.

As reported in a recent member communication, we have $4-$5M in cash including capital reserve investments. I would recommend reading the last couple of member communications.

We had hoped the pump station could be delayed but with the pending replacement of both sets of greens, we feel it makes sense to proceed sooner than later with such a vital piece of equipment. No, it was not previously budgeted. As with many items we inherited, it’s twenty years old and has had minimal upgrade over the years.

I’m not certain what you find scary but The Hideaway is a large project with many ongoing capital needs. We started with zero cash and zero reserves. We have a lot to do to get up to speed.

We state we are doing an assessment for the kitchen for 3mm and the pump station for 1.2mm (our portion). 4,200,000 total.

We have 430 members. The assessment raises no excess funds. The Club has ample operating funds. These all relate to capital expenditures.

At the annual meeting we stated we would be fronting the cash for the kitchen expansion and remodel, then doing as assessment. All that changed was the urgency of the irrigation pump station.

All questions received have been responded to and posted on the member website for all to see the questions and responses. There have been less than a half dozen questions related to the current matter. That action was exactly what was promised and was completed within several days of receipt of questions.

To be honest, the current matter is relatively simple. As we have consistently relayed to the membership, the Club has fronted the funds for the kitchen renovation subject to reimbursement by member assessment. That construction will be completed next month.

Likely we would have postponed the assessment for the kitchen until the member presentation and vote for the facility expansion and renovation but the irrigation pump house replacement came a bit sooner than expected and is a critical component of our entire golf operation. Given the schedule for delivery of the new pump house equipment we made the decision to separate these two items from the facility project. This will ensure our cash position remains strong.

Hopefully over the past few months you have had a chance to read the member communications from the Board and from Gerry Tarsatino related to issues with our turf transition from winter grass to the underlying Bermuda. There were several. I spent all last week at the Hideaway. I understand how it looks today, but if you had seen it 60 days ago, you recognize the tremendous progress. Tee to Green we are 90% on track. Certainly 25% of the greens have a way to go but we have completed the major sod patching, that grass is growing, and we will begin overseeing in the next two weeks. Gerry and I are very confident we will be exactly where we need to be at season open.

Just for the record, Gerry did have outside grass consultants in to assist, as there were MANY clubs in the desert that experienced transition issues due to the unseasonably mild early Summer. Lucky for them, most recovered faster than we did. We are focused on next Summer and making certain we have green replacement ready to kick off by June 1 so we have fresh, new greens and hopefully avoid this problem in the future.

As a long time member, I think you will agree that this was very unusual and they typically Gerry has the transition go much smoother. We went from some of the best conditions we have ever had, to the other end of the spectrum, but I assure you it was not from a lack of budget, oversight or skill set. I believe it’s under control.

As for retaining Discovery to manage the Club, I can tell you this was discussed at turnover. It went from they would do it for free, to a $500,000 annual fee and we determined self-management was the better course. It would be difficult to be managed by a party you are litigating against.

Our new GM started last week. His start was one of the primary reasons I spent the week in the desert. The Board is very comfortable with our choice of leadership and I would urge you to stop by and meet him at your earliest convenience. No one is happier than me to have him in place!

Thor has a strong background including exceptional F&B experience. Again, I’m very confident we are in good hands. Hardly a day passes that he and I are not in communication.

The kitchen project is on track and you will get a lot of information soon about the facility project.

I assure you that the Board and several Committees are looking at the big picture. It just takes time to assemble that data. Lot of components. I’m not sure where you got your $20M figure but it’s completely inaccurate. All are planned presentation and discussion matters for the member presentation we are hoping to have in December.

If you read the previous member communications, the reason for this assessment was made clear. Both items are critical components and waiting for a few months could be detrimental to our finances. We understand the nuisance of multiple votes, but our reasoning is sound. We do know the big picture assessment number. When we do, we will share with the membership.

The budget process for 2024 has just begun. Our new GM has been onboard one week. It likely will be two months before we have that answer….which is typical for past years.

There will be a series of member meetings for the major facility project. No numbers have been released, so those figures being bantered about are pure speculation. The Master Committee and Board are still working through the package and costing to prepare a package and proposal for member consideration.

This project has been ongoing for over two years. There has been much member feedback and there will be opportunity for much more. It’s not new. Whatever the outcome, it will be based upon member vote. It will be made very clear prior to the vote as to the cost and assessment expectations.

The current vote is simply for the kitchen project and the irrigation pump station. They would have been part of the other package but for the reasons identified, were accelerated.

We are well aware it is a member decision and we have never indicated otherwise. Any assessment is subject to member vote. We are also well aware of our fiduciary responsibilities as stewards of our fellow members funds.

We are not planning a meeting prior to the current assessment vote. The scope and reasons have been well conveyed to the membership.

If you have specific questions that you feel were not previously addressed, please let us know and we will post a response.

That determination has not been made as yet. As we continue to develop the five year capital needs plan, I suspect that will be a key point of discussion. I’m certain it’s well in excess of the two million we currently have.

I assure you that the Board recognizes our golf courses as our most important asset.

We are currently working on assembling a five year plan that addresses a large scope of golf needs.

Sports members are subject to assessment for the items that relate to their membership privileges, in other words, Clubhouse related.

They are not subject to the irrigation pump assessment portion as that is primarily golf related.

The same would apply as to future assessments. In other words if there was an assessment to replace the greens, they would not be assessed but if there was an assessment for fitness center, they would.

The initial contractor bid was approximately 2.5 million for the kitchen. As described in prior member communications, it grew to 3 million as new issues were discovered when things were uncovered. As you might imagine, when remodeling you don’t always know what is uncovered as you tear out the original work.

The kitchen was enlarged by 40-50%, taken back down to the studs and rebuilt utilizing all new equipment. Our cost is in line with several other clubs who have undergone a similar process. We went from one walk-in to two. It’s not the same kitchen.

The equipment package alone was almost 30% of the final cost. The venting, hoods and HVAC was almost 25%. The contractor fees and general conditions were almost 20%. Some small prep items are being re-utilized, but in general all equipment is new.

Yes, we used a kitchen consultant. Yes, we used an architect. Yes, we used a highly qualified contractor. It’s just expensive work but in line with expectations other than a few surprises from the past that were uncovered as we progressed.

It seems a bit early to determine you will vote against the upcoming facility project, but if you feel the fifty members who have volunteered hundreds of hours working on the project are all incompetent, we will accept your decision. Regardless, as a member you will be bound by the outcome of the member vote.

Thanks for your participation and feedback.

• No, it is not a violation of Club By-Laws. The Board is authorized to spend up to 7mm over five years plus any amount up to 10% of annual club gross receipts (about 2mm).

• At the annual meeting members were told we were going to FUND the kitchen from cash on hand and assess later. That is what we have done.

• The golf course projects are being researched now and will be presented to the Membership later in the year. The kitchen, prioritized in the member survey by 95% of the membership is unrelated. Critical nonetheless.

• We are aware of the status of the irrigation system. Mr. Harvey has no better crystal ball than the rest of us so his comments are his assumption of remaining life. The system will be included in future capital requirements. It is functioning adequately. The study posted on the member website was updated this Summer. It is not four years old.

• Estimated cost of the irrigation system is roughly 2mm per course. Obviously this assumes we have a functioning irrigation pump system (part of current assessment) as without that, we can’t get water TO the irrigation system.

• We recognize the importance of our greens. It has been the subject of numerous member communications. We will report the expected budget for those items when presented to the Membership.

• Again, it has been made clear in numerous member communications that facility and golf capex for the next five years will be presented to the Membership for vote.