MEETING OF THE GENERAL MEMBERSHIP

Date: Monday, Sept. 20, 2010

Directors Present: Robert Feldman, Dr. Betsy Hay, Michael Bittle, Tom Turk, Sylvia Graham, Mimi Klein, Judge Hamilton Gayden, Rob Delucas, Richard Frank, Dr. Ashwath Jayagopol.

Absent: Larry McClanahan

Staff: Richard Watson

A quorum was present.

The meeting was called to order at 6:00 p.m. by President Robert Feldman.

Minutes of the 2009 annual meeting were approved as distributed.

President Feldman introduced Board members and General Manager Richard Watson and recognized the contributions of Dr. Hal Ramer, a director who passed away February 14, 2010.

Richard Watson introduced staff members who were working or present: Hilda Ariza, Jason Duke, Thomas Ewing, Betty Scruggs, Fernando Verschueren, Nieya Wallace, Chef Nick Govrik, Tiara Graham, Bernard Hardaway, Adam Mitchell, Heather Vogler, Kevin Marron, Julio Lynch-Lorca, Jonathan Taylor, Justin McPherson, Joel Munoz, Melissa Simon, Ellen Reat, Ana Salazar, Paula Vestal, plus Deborah Fluhart, who was on vacation.

Reports

Treasurer Richard Frank and Finance Committee Chairman Michael Bittle presented the financial report. Mr. Frank began with an overview of the year and the economic disruptions that led to a reduction in discretionary spending by the public. He said the University Club had weathered the recession. He reported that at the end of the fiscal year the Club outsourced its bookkeeping and financial management to APHCPAs, after the firm completed its engagement as Club auditor. A new Country Club System bookkeeping system was installed at the first of the year. Mr. Frank concluded his remarks saying the Club’s financial outlook is favorable, but that member support is required to maintain its stability.

Mr. Bittle pointed out that the Club began the year with the highest amount of monthly income in June, then suffered a reversal in July when revenue dropped and expenses were higher than expected. His analysis showed improved revenue levels in April and May as costs were contained, bookings improved, and revenue increased. Mr. Bittle also presented a trend analysis of annual revenue and expenses and annual net profits reports for the fiscal years from 2003 to 2010.

Turning to the Club’s 2010-2011 budget, Mr. Bittle said assumptions are based on a base of 850 members, conservative increases in banquet, member food and beverage revenue, no increases in member and banquet service charges, costs of goods (food, liquor, wine, and beer) within industry standards, elimination of the controller and marketing positions, a cost-saving contract for accounting services, and a small increase in utility costs. [The financial report will be filed with the Minutes in the Club office.]

Responding to questions from audience members, Mr. Bittle said that the reason for the income shortfall in July 2009 was due to fewer weddings than usual during that month and the overall downturn in discretionary spending that plagued the economy in general and the dining sector in particular.

The breakdown of the point-of-sales computer in the lounge was discussed, which the Board and staff are in the process of addressing. The Club hopes to purchase a POS program as part of the Country Club System.

Finally, a member asked whether the Club was involved in any litigation at present. Mr. Bittle said there was none.

In his report General Manager Richard Watson described ways the Club staff was holding down expenses, working to capture more wedding receptions as business begins to trend upwards. He added that the Club is getting more booking referrals.

Mr. Watson also reported for the House Committee. He said that Olert Engineering was engaged to conduct an analysis of the 42-year-old heating and air conditioning systems, which the staff is maintaining.

Reporting for the By-Laws Committee, Judge Gayden reminded members that the Club by-laws permit faculty, staff and graduates of 18 middle Tennessee institutions of higher learning to become University Club members. He added that the Club also accepts graduates of other colleges and universities if they are recommended by a current member. He urged members to encourage eligible prospects to join.

Tom Turk provided Marketing Committee highlights. After the 2009 annual meeting the Club upgraded its computer server and the Country Club System computer software program to improve financial management and enable the Club to improve its marketing efforts and better communicate with members. The Tennessean Media Group company 1100 Broadway was engaged to redesign the Club website to increase outside business development, market Club events to members, and recruit new members. The website should be on line before the end of the year.

Membership Committee chair Sylvia Graham said the Club had 860 members in August 2009, gained 62 members as of this meeting, but had 60 resignations, terminations, and deaths, for a net gain of two members to 862 today. She encouraged members to tell friends to join and enjoy the Club experience.

In her Program Committee report Mimi Klein listed the wide variety of special nights, events, dinners, sports buffets, and other social activities the Club offered to members during the fiscal year.

President Feldman thanked Mr. McClanahan and Mr. Turk for their service on the Board of Directors and added that his term as a regular Board member concludes with this meeting as well, although he will serve ex-officio as Past-President for the coming year. He also thanked Norman Worrell for his service to the Club as he concludes his year as Past-President.

Rob DeLucas, chairman of the Nominating Committee, thanked Sylvia Graham and Betsy Hay for their help on the Committee and announced the nominees for directors:

Stephanie Martin, to fill an unexpired term of one year

Kasey Dread, to serve a four-year term

Pam Jones, to serve a four-year term

Lady A. Bird, to serve a four-year term

Betsy Hay offered a motion to elect the slate of nominees by acclamation. Second by Richard Frank. Approved unanimously by the members present.

President Feldman thanked the members, expressed appreciation to them for attending the meeting, and for their support of the University Club. He commented that the restaurant business has been through a challenging economic period. He pointed to the improvements in financial management, the engagement of APHCPAs to do the bookkeeping, and the work on Club marketing and the website redesign as important accomplishments during the past year. He asked members to make sure the Club office has their email addresses so the staff can begin to distribute the newsletter and other important information electronically. Then, he introduced Dr. Betsy Hay as University Club of Nashville President for 2010-2011.

President Hay responded that she is honored to lead the Club in its 49th year. She thanked Mr. Feldman for his strong leadership, his vision, hours of hard work and wise decision making. She said the Club membership has much to celebrate and some challenges ahead, then shared a six-part strategic plan for the year:

First -- Live within our means via the conservative budget created which will be monitored closely with our new accounting firm. Wish lists will be funded only when the money is in hand. Top priorities: purchase a point-of-sale software package to computerize our internal processing system for greater efficiency and control, and add funds to the capital budget in case some of the older equipment breaks down.

Second -- Expand the Club’s ability to communicate with members in a timely and cost-effective manner through the new website with photos plus up-to-date information. The goal is to “keep you in the know so you won’t miss out.” She also asked members to help by giving the Club their email address.

Third -- Start a marketing initiative to recruit new club members, identify ways to appeal to younger members, and publicize what an amazing value the club is -- its great location, food, and programs, plus the fact the Club accepts most credit cards. Inform prospects that membership is open to college graduates of any accredited university in the world.

Fourth -- Target outside business (more wedding receptions, business meetings, social groups). Additional outside business will enable the Club to keep costs lower for member events and maintain the Fernando pour.

Fifth -- Encourage members to use the club frequently. “This is your club,” she said. “Come and enjoy it. We need your presence to achieve that shared fellowship that makes this club so special.” President Hay asked members to voice their ideas and suggestions so the Club can provide the atmosphere, events and programs they desire. And, she urged members to consider joining club committees, such as the Program, Membership, and Marketing committees that would be recruiting in the lobby after the annual meeting.

Sixth -- Plan for the future. She said the Club is preparing for its upcoming 50th anniversary next year. In addition, the Club looks ahead to identify ways it can grow and prosper in the longer term.

In conclusion, President Hay said there are opportunities that lie ahead for the Club’s 49th year. She asked members to recall the old song lyrics “All the gold in California is in a bank in the middle of Beverly Hills in somebody else’s name.” She pledged that the ‘49-er Board, club management, and staff will work hard on behalf of the members to prospect for new members, stake a claim on new business, and bring gold into the University Club account. “Now,” she ended, “please join me for some liquid gold and a chance to greet the incoming Board.”

The meeting was adjourned at 7:15 p.m.

Respectfully submitted,

Thomas L. Turk, Secretary