President's Message from Scott

Membership Changes

For the last four months, the Board and leadership team have been working on a set of bylaws and policy changes to strengthen Sahalee’s membership. This inclusive process culminated in all four bylaw proposals being overwhelmingly approved by members. Each proposal received roughly 3 “For” votes for every 1 “Against” votes (75% to 25%). The Board and club leaders are excited about the membership’s enthusiastic support of these changes. Following the Special Meeting, the Board met to discuss and approve policy changes consistent with what was communicated in the bylaw change proposal Below is a recap of the policy changes approved by the Board:

The board approved all three new membership types previously presented: Dining, Social (updated), and National. These new and improved membership types will help Sahalee subsidize dues while not ‘giving up’ too much access to the golf course. Additionally, with the addition of monthly Capital Dues, these new membership types will deliver over $500k in new capital over the next 10 years – helping to fund capital improvements. Initiation fees from these new memberships will further add to Sahalee’s Capital Fund.

As discussed in the member information session, the Board is concerned with the projected number of Senior conversions over the next 5 years – especially in our environment where Sahalee owns Proprietary Memberships (each conversion is an obligation to sell an additional Proprietary Membership just to stay level). Thus, consistent with previous communications, the Board instituted a cap on Senior Memberships to 40. Today there are 37 Senior Members with the potential for 3 Proprietary Members to upgrade in 2023, the Board felt the cap of 40 was fair.

At the request of leadership, the Board supported a policy change for Associate members looking to leave Sahalee to allow the leadership to hear feedback and hopefully recover the resignation. Associate Members looking to resign will remain as members for two months following the end of the month in which their resignation is received.

Finally, the Board approved a comprehensive set of Member Referral Incentives that reward members who successfully refer and sponsor new members. The incentives are significant, and the Board believes such a program is a vital component of building a stronger membership. Members are the best source of new members Stay tuned for detailed information

It’s worth noting, Sahalee’s new Membership Director Deann Anderson has been very busy recently (you may have seen her giving amazing tours). Each month, the Board receives a detailed review of commitments, as well as those prospective members who are in process from Deann. Based on her current May pipeline, we anticipate welcoming more than a dozen new golfing members beginning June 1st. New prospective members are excited with the vibe they’re experiencing and are impressed with the investments the club is making in improving members’ experiences. Deann is also capturing and providing detailed themes of concerns that may be expressed so that we can act on issues that are addressable. We believe we have a lot of momentum as we turn to prime golf season.

As important as the changes are, it’s also important to clarify what’s not changing. Thanks to member feedback, we decided to act cautiously with several items. These are the policies that are NOT changing:

The Board did not put forward a bylaw change that would have removed the one opportunity to remove one’s name from the “To Leave” list Members on the “To Leave” list can still remove their name one time – per the bylaws

The Board is not changing the Saturday Morning Block access in any way. Nor are we changing the men’s or women’s blocks. The Board never contemplated changing from the current approach.

The Board has decided to hold off on implementing the advanced tee sheet access differentiation by membership type. We want to get this right – creating differentiation in terms of value while being true to the commitments the club has made previously to current Junior Executive and Senior members.

Given all of these changes and the potential for conversions, the Board and Leadership are planning to hold three smaller sessions with Junior Executive, Senior, and Social members. This will allow the Board the opportunity to explain all these changes, provide information on upgrades and membership category changes and answer general questions and concerns. Look for these sessions to be scheduled in the coming weeks.

Additional April Business

The Board received critical updates from Club Leadership:

Leslie Ludlow, our GM and Siemon Slagter our Controller shared our Q1 financial results.They were fantastic. Through a combination of expense management and enthusiastic member response to Sahalee’s improved dining experience, the club exceeded our Q1 operating profit target by $100k.

Deann Anderson, Membership Director, reviewed recommended prospective members and the future membership pipeline. The Board was impressed with Ms. Anderson’s efforts to promote all the wonderful aspects of the Sahalee experience resulting in increased membership activity levels. The Board approved 3 new Prospective, 2 Junior Executive, and 5 new Social members in April

The Board approved several Golf and Greens Committee recommendations:

Rescheduled “Husky Day” to June 2nd plus a new outside golf event in mid-September.

New electronic walking cart storage pricing recommendation from the Finance Committee of $795 annually (includes club storage) and lottery process for limited availability.

Saturday 3pm “Family Hours” on one nine, where those newer to the game or wanting to practice can play without concern for pace of play. This change will make Sahalee even more family oriented by providing an opportunity for those who may be a bit intimidated an opportunity to learn the game at a more relaxed pace.

A hospitality day on October 3rd to impress prospective KPMG sponsors This is part of Sahalee’s contract with the PGA for hosting the KPMG Championship The more Sahalee can support sponsorship levels, the higher potential revenue the club will see from the Championship.

Newly designed tee markers. Our current Sahalee tee markers have reached the end of their 7-year life. Charlie and his staff spend over 150 hours each year just to maintain them. The Greens committee evaluated a variety of options including replacing what we have today.Both the Greens Committee and Board were enthusiastic about the new design. They are currently in production, and we anticipate their arrival before the end of June (supply chain permitting).

Approved an updated Dress Code from both the Golf (on course and practice facilities) and House Committees (social and dining areas). Look for that communication shortly.

Looking forward, the Board remains focused on monitoring financials, improving member experiences, and attracting and welcoming new members to our Sahalee family. This month, the Board approved ten new memberships Welcome new Sahalee Members!

Proprietary (3):Christopher Driscoll & Young Eun, D.r James Bartscher & Marisa Dahlman, and Avinash & Divya Ravi

Jr. Executive (2): Alex & Morgan Bell, and Evan Phillips and Eva Linh

Social (5):Florence & Shawn O’Quinn, Fernando & Letisha Pohina, Rupalli Thacker, Richard & Margaret Martinez, and Sean & Monica O’Brien

Sincerely,

Scott Heydon Club President

The Sahalee family warmly welcomes our new Golf Members!