De-amalgamation Steering Committee Minutes - Monday 1 October 2010

In attendance: Terry Jackson, Bill Keith, Gary Kitchenside, Kevin Nowland, Bernie Russell

Apologies: None

Survey

Feedback in the survey was generally very positive and constructive. It was noted that there were a large number of responses from non-sporting members who use the facilities (both the clubhouse and golf/bowls) regularly.

Constitution

Feedback has now been received from the Men's and Ladies' Golf Clubs, with the Men's Bowls Club to follow shortly. The Women's Bowls Club and Carpet Bowls Club have undertaken to respond within the requested timeframe.

The Constitution sub-committee has undertaken to meet on Monday 18 October to discuss the responses.

Schedule of Tasks

Gary has distributed the document from Piggot Stinson, showing the current status of each task. Steering Committee members to respond to Gary with comments and additional information.

Gary to follow up with OLGR regarding the need for a full Community Impact Statement to be undertaken.

Financials

Kevin distributed updated figures. Christine Ward has provided details of expected savings (approximately $35k per annum) arising from changed opening hours and rostering improvements, and additional savings of $9k per annum from using volunteer labour for running Bingo and assisting with Trivia nights. The Steering Committee also agreed to remove the $25k contingency from the figures as it may be able to be offset by savings elsewhere.

After allowing for the above, the new figures show an EBITARD of approximately $235,000 prior to any loan repayment, still short of the $250k required by IPART guidelines. After considerable discussion, the Steering Committee agreed, on balance, to support an assessment of financial viability on the basis of a $235k EBITARD subject to the following parameters:

1. Lot 1442 is still regarded as important to the future of the club, and as such, the following agreement was desired:
   • Agree to current value prior to de-amalgamation (either most recent valuation or a new valuation);
   • TBCC (or a 3rd party nominated by TBCC) to have first option to purchase the land at that valuation;
   • MIBC not to sell the land in the first 2 years following de-amalgamation;
   • MIBC to withdraw its rezoning application.
2. Stock and cash to be transferred to TBCC for no consideration as the repayment of any loan would tip the balance of the viability of the new entity.

Independent Legal Advice

The steering committee reaffirmed its position on the need for independent legal advice, as outlined in the minutes of Monday 27 September.

Other matters

The Steering Committee will meet with the Board on Wednesday 6 October at 3:00pm. It was agreed that it would be worthwhile for the Finance Sub-committee to meet with the Finance Committee of the Board prior to that time if possible, to validate the assumptions used and to ensure that there has been no recent developments at the club that might affect the financial projections.

Next meeting to be determined after the meeting with the Board on Wednesday.

Bernie Russell
Secretary, De-amalgamation Steering Committee