Dear Members, 2017 is the kick start year to the next 100 years of stability and growth of our Spokane Club. As your Club Board, we know it will take a team effort, with every one of our members playing a vital role in the care--and the enjoyment--of our great Club. Together, we will make it happen! Our work is twofold: First, to repair and maintain our facilities and second, to continue to upgrade in order to retain and grow our membership. Historically, this work has been a challenging proposition and current circumstances have increased that challenge exponentially. As early as 1980, the Club had a substantial need for capital improvements over and above the funds that could be generated through dues and Club operations. Nearly 40 years later, with decades of deferred maintenance, the need has significantly grown. In addition to the longstanding Capital project needs and the impact of deferred maintenance, recent changes to local and federal labor laws have created new challenges for the Club. Changes in minimum wage and employee sick leave laws’ impact to the Club is over $300K annually. This forces the Club to reduce the amount of money previously committed from Operations to Capital projects. These Capital needs are legacy issues of long standing. In the present day, it’s important for us as a Board to acknowledge the great progress the Club’s
CEO and her team have made. This work includes significant and diligent cost-savings across the board including: Food & Beverage costs of goods are down by 10%, Valley expenses are down 11%, and overall costs at Downtown Club are down 5%. In addition, Membership has stabilized and we have a positive number of members for this fiscal year for the first time in years. However, present progress is not enough to bridge the long-term gap between capital projects and the capital funding needed to execute on them. Given all of these circumstances, your Spokane Club Board of Trustees has unanimously approved a Capital Assessment program to begin March 1, 2017 and to run for 5 years. The Capital Assessment will be $25 per month and appear on your monthly statement. We believe this monthly fee is a reasonable amount that will not overburden member households. Capital Assessments are completely separate from Membership dues. All funds from Capital Assessments will be kept in a separate account and be used solely for Capital projects. Examples of capital projects can be found on page 4. This 5-year plan is based on our current 2,451 memberships and equates to $3,676,500. If you choose to donate additional funds or pay the full five years in advance, you will receive special recognition on a plaque that will be proudly displayed in the Clubhouse Lobby. In our research of Capital Assessment programs, we spoke with 17 private clubs that have implemented such
programs. We learned that Capital Assessments are rapidly becoming a best practice among historical clubs, given the increased cost and complexity of repairs associated with them. All of the clubs we spoke with felt that the implementation of Capital Assessments strengthened both their members’ enjoyment and engagement with their clubs, as well as fortifying the future of their clubs. We believe the same positive outcome—and future—will prevail at the Spokane Club. Our Capital Impact Project Survey of 2016 showed the majority of our Club members were in favor of Capital improvements. The additional challenges presented to us in 2017, and noted in this letter, make the implementation of Capital Assessment a clear and present priority. Look for more information on the Capital Assessment Program in your email inbox and posted around the Club facilities. If you have any questions, please feel free to contact our Board Officers. Their email addresses are available on the Club website at: Spokaneclub.org/business, or contact our CEO, Stacie Harper at sharper@ spokaneclub.org. We thank you for your membership to the Spokane Club. Together, we will build a legacy for the next 100 years. Sincerely, Your Spokane Club Board www.spokaneclub.org | Spring 2017 | 3