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MANAQEMAL AND ECONOMC fiEECESiGNS ENVOWEE
QN REBUSLQENG A (393.1: CLUSHOUSE:
A CASE APPMBACH

$319355 for fine G09?“ 9%: M. A.
MICWGAN 5.33.3 UNWERSIW
Emma; E. W'aésh
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LIBRARY

Michigan State
University

 

MANAGERIAL AND ECONOMIC
DECISIONS INVOLVED IN
REBUILDING A GOLF CLUBHOUSE:

A CASE APPROACH

A THESIS

Presented in Partial Fulfillment of the Requirements
for the Degree Master of Arts in the Graduate School
of Hotel, Restaurant, and Institution Management

Thomas E. welsh

Michigan State University

1962

A 4\

{1%.
(a

TABLE OF CONTENTS

Chapter

PEACE. O O O O O O O O O O O O O

I. INTRODUCTION . . . . . . .
History of the Club. . .

Organization of the Club

Location of Club . . . . . . .

Status of Club at Time of Fire

II C THE FIRE O O O O O O O O 0
III. FIRST STEPS AFTER FIRE . .

The Building Committee .

IV. TEMPORARY FACILITIES . . .

V. HIRING THE ARCHITECT . . .

Consideration in Selecting

Procedure in Selecting the

the

Architect

0

Architect

VI. PLANNING THE CLUBHOUSE . . . . . .

Hiring the Decorator . . . . . .

VII. BIDDING AND AWARDING THE CONTRACT.

VIII. HIRING THE LANDSCAPE ARCHITECT /.

Page

12
16
16
17

19

20

23
26

IX. FINANCING THE CLUBHOUSE . . . . . .

X. PRELIMINARY CONSTRUCTION PROCEDURES

XI. THE CLUBHOUSE PLAN. . o . . . . . .

Men's Locker Room . . .
Ladies' Locker Room . .

Enployee Locker Room. .

Pool Bathhouse Facilities

Dining Room Facilities.
Food Preparation Areas.
Barsemceooooo'o

Pro Shop

Administrative Offices.

XII. PREPARATION FOR OPENING . .
Organization of Staff .
Personnel Procedures. .

Selecting the Staff . .

Pre-Opening Training Program. . . .

Procedures fothood and Beverage.Cost Control

Hours of Operation . .
Purchasing Supplies . .

The Grand Opening . . .

XIII. PROSPECTS FOR THE FUTURE. .

SUGGESTED READINGS

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36

37

38

39

39

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42 ~/"
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51 /"
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ACKNOWLEDGMENTS

The planning and construction of a clubhouse requires the efforts
and abilities of many peOple. Because the writer's abilities are
limited primarily to the field of club management, considerable advice
was received from the architect, contractors, engineers and decorator
concerning the professional and technical phases of the building project.

The Board of Governors, Building Committee, and membership of
walnut Hills Country Club, East Lansing, Michigan are eSpecially de-
serving of the writer's appreciation for permitting the writer to
continue his college studies in addition to the increased responsi-
bilities in the management of the club.

Gratitude is expressed to Dr. Joseph Thompson, Head of the School
of Hotel, Restaurant, and Institution.Management, Michigan State
University, for his guidance in the preparation of this paper and to

his staff who were helpful in providing useful suggestions.

PREFACE

Clubhouse fires are not a particularly rare phenomenon. To the
knowledge of this writer, at least eight private clubs in Michigan alone
have had their clubhouses either partially or completely destroyed by
fire between the years of 1954 and 1962.

When such a catastrOphe does occur, the lives of many persons are
affected. Clubhouse employees are without jobs, club directors are con-
fronted with increased and unexpected responsibilities, club members are
without facilities and confronted with the possibility of paying a large
and unexpected assessment, and community residents may lose a social
facility upon which they may have depended.

Regardless of the loss, the forces of the club must be regrouped
to make plans for the future. Included in the plans are a reconstruction
program and a provision for temporary facilities if the clubhouse is
destroyed to the extent that it cannot be used during the reconstruction
period.

Because only limited information is available concerning the recon-
struction of a golf clubhouse, and because this writer has experienced

such an event, this paper is written.

ii

The purpose of this thesis is as follows:

1. To explain alternate courses of action available in
planning the golf clubhouse.
2. To outline action taken and the reasons for such action.
3. To outline the sequence of events from the time of the
fire to the Opening of the new clubhouse.
4. To illustrate the importance cf coordination and cOOperation

among the many persons involved in such a building program:

a. Membership

b. Board of Directors

c. Building committee

d. Club manager

e. Golf professional

f. Greens superintendent
g. Architect

h. Contractors

1. Interior decorator

3. Landscape architect

k. Other Operating committees of the club

In order that the reader might better understand the content of this
paper, every effort has been made to keep the format in the chronological

order of events.

CHAPTER 1

INTRODUCTION

History of Club. walnut Hills Country Club was officially founded
in 1929 as a golf club. The club purchased 19“ acres of farm land on
which an eighteen hole golf course was deve10ped. Except for a small
clubhouse, the course was the primary facility. A.membership could be
purchased for one share of stock which cost $200.00.

Shortly after the golf course was opened, the club experienced the
effects of the depression and many members resigned from the club. A
share of stock could then be purchased for $10.00. The club debt, which
was small by today's standards, presented a serious threat to the club's
survival; however, because of the tireless efforts of the remaining
members, the club succeeded.

Over the years the membership grew and changed resulting in a demand
for increased services and facilities. Food and bar service along with
an accompanying social program were added.

In 1950 the club had slightly over 200 members. The growth since
that time has been tremendous. A banquet room, additional locker
facilities for the ladies. and a new pro shop were added in 1954. A
swimming pool with bathhouse facilities was constructed in August, 1957.
Patio food and bar service was begun in 1959. A complete, underground
watering system for the golf course was installed and in operation in
1960.

By the end of 1960, the club had 504 members. The membership con-
sisted of Regular, Social, Non-resident, Junior, and Special Members. A
waiting list for the Regular membership was established. The cost of a

Regular membership was $512.00 plus $26.00 monthly dues.

Organization of Club. walnut Hills Country Club is incorporated as
a non-profit organization with a tax exempt status. Each member of the
club has one share of stock entitling him to one vote at the annual stock-
holders' meeting.

The Board of Governors consists of fifteen members, each of whom
serves three-year terms. Five board members are elected each year. Each
board member has the right to seek re-election when his term expires.

The officers of the board include a president, vice-president, and
a secretary-treasurer. These officers, plus two other members of the
Board of Governors appointed by the president, comprise the executive
committee which acts as a steering committee for the club.

The president also appoints the chairmen of the various operating
committees of the club. Each committee chairman is a member of the
Board of Governors and is reSponsible for selecting members of the club
to serve on his committee. Each committee is then reSponsible for the
Operation of a particular phase of the club. The ten Operating committees
of the club are listed below.

1. Finance
2. House
3. Social

4. Swimming Pool

5. Public Relations
6. Membership

7. Golf

8. Pro-Caddie

9. Handicap

10. Greens

A staff of employees is hired to provide the necessary services and
to maintain the club prOperty. The club manager, golf professional, and
greens superintendant are hired by the Board of Governors. The manager
is reSponsible for the club house and pool Operations and for the per-
formance of the administrative duties.

The golf professional is responsible for the operation of the Pro
Shop and club storage room. The greens superintendant is responsible for
the maintenance of the golf course and other club prOperty. The organi-

zational chart of the club is shown on the fellowing page.

Loggtion 9; Clgb. walnut Hills Country Club is located in that
portion of central Michigan known as the Greater Lansing Area which has
a population of approximately 250,000 persons.

The club prOperty is located on the outskirts of East Lansing and
about six miles from downtown Lansing. East Lansing is the home of
Michigan State University. In addition to being the state capital of
Michigan, Lansing is noted for its heavy industry. Oldsmobile Division
Of’General Motors, Motor Wheel Corporation, Reo Division of'white HOtors,
and several large forging companies have their home offices and main

plants in Lansing. A large assembly plant of Fisher Body Division of

 

 

 

 

 

 

 

 

 

 

 

 

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General Motors is also located in Lansing. Several large insurance
companies, such as Auto Owners Insurance and Michigan Millers Insurance,
have their home offices in Lansing.

Consequently, members of walnut Hills Country Club are from all
walks-Of-life. Included in the Club Roster are factory executives,
university staff and faculty members, government executives, bankers,

lobbyists, doctors, attorneys, merchants, and salesmen.

Status of Club at Time of Fire. As mentioned previously, walnut

Hills Country Club had a full membership of Regular members (350) and a
total membership of 504 members. This was considered a capacity number
for the 17,000 square-foot clubhouse.

A contract to complete a remodeling project started a year befOre
was awarded a few days before the fire. Also, an architect was selected
about one month before the fire to make a preliminary study for the en-
larging of the lobby, office, and cocktail lounge facilities.

Financially, the club was in a sound position. The only large
debt was a mortgage payable of about $63,000 which was used to finance
the $55,000 swimming pool and the $54,000 underground watering system.

The ratio of current assets to current liabilities was about 8 to 1.

CHAPTER II

THE FIRE

At 2:25 p.m. on wednesday, February 1, 1961, the Office manager
called the township's volunteer fire department to report a fire in the
club's locker room. The fact that the fire was serious was not realized.
The office manager made the call as a result of a suggestion from the
pastry cook who was about to end her day's work and noticed some flames
in one corner Of the locker room.

In the banquet room, the ladies were holding their weekly bridge
session. The dining room hostess had to shout several times at them
before they would believe that the fire was out of control to the extent
that their bridge playing would be interrupted.

The fire completely destroyed the clubhouse. The black smoke of the
fire could be seen from across town twelve miles away. A large airplane
circled overhead so that its passengers could see the fire. The roof and
the second story floor were burned out. Steel lockers and steel pipes
were almost reshaped. Silver coins found near the cigarette vending
machine were melted together. All records in the safe were lost. The
accounts receivable, to be sent to the members the next day, amounted
to approximately $31,000.00, and only about one-third of their value was
ever received.

The cause of the fire was never determined. Although it was assumed
that the fire must have been burning for some time, there was no evidence

of smoke or odor earlier in the day. Upon inSpection of the ruins, the

fire marshal and inepectors concluded that the cause of the fire was not
because of human negligence.

There were several factors which made the task of fighting the fire
difficult. The club's location beyond the city limits was serviced by
a small fire house not sufficiently equipped to handle such a fire. The
fire was out of control before they could summon help.

The water supply to the club was furnished from a well located about
seventy-five yards from the clubhouse. The well pump was furnished
electricity from the clubhouse. This electrical service was destroyed
early by the fire. Considerable time was lost during the installation
of a line to the pump house.

The weather was also a problem for the firemen. A stiff northern
wind, five degree temperature, and snow-covered ground created a severe

handicap.

CHAPTER III

FIRST STEPS AFTER FIRE

Several arrangements had to be made even before the flames were
completely extinguished. The insurance agent handling the club's fire
insurance was notified. Police protection was arranged for both security
and safety reasons. A Special meeting of the Board Of Governors was
called for the following evening.

After the insurance adjustor made his inSpection of the ruins, he
asked to be furnished with an appraisal of the building and building
contents. Blueprints of the original building plus additions were used
to evaluate the building. The club manager prepared a complete list of
the building contents and the present cost of replacing these items.
After consideration for depreciation, the club's fire coverage of
$191,000.00 was only about $5,000.00 below the appraisal. Fortunately,
the club's insurance coverage was increased nearly $50,000.00 two years
before the fire.

The importance of police protection following such a fire was
quickly proven. Meet Of the 500 members and their families plus many
interested persons were anxious to see the ruins. Because the walls left
standing were greatly weakened by the fire, the reSponsibility to keep
the curious Spectators and amateur photographers a safe distance from the
ruins had to be recognized and fulfilled.

The Special meeting of the Board of Governors was attended by all

directors. Their interest in the club axd concern for the club's future

was Shown by their attendance at and participation in the business meeting.
Plans and decisions which had to be made at this meeting are listed below:
1. Location for a temporary office
2. Procedure for terminating employees
3. Removal of ruins from site
4. Agreement to build new clubhouse
5. Procedure for keeping membership informed

6. Arrangements for visiting other clubs

The temporary office was in Operation two days after the fire. An
unoccupied apartment which was formerly used as quarters for the manager
was equipped with borrowed desks, furniture, and other office equipment.
Telephone service was installed immediately. The first order of business
was to set up new files and records and to help relocate scheduled parties
and other functions. The club's social functions were also relocated in
an effort to keep the membership together.

One of the unfortunate results of the fire was that the anployeee
were left without jobs. lMany were long-time employees. Although a few
received help from the club in finding new jobs, most employees had to
seek their own employment or apply for government compensation.

The ruins Of the building were removed within a week after the fire.
A club member equipped to handle the wrecking and moving of the rubble
was hired. The scrap metal from lockers, food service equipment, pipes,
and supports was sold to a local scrap dealer.

The vote to build a new clubhouse was only a formality. Considerable
discussion was heard concerning the type Of clubhouse to be built and what

facilities would be included. As a result of the discussion, it was agreed

that a questionnaire would be sent to all members to obtain their Opinions
on the following items:

1. The architecture of the new clubhouse

2. The facilities desired

3. Special features desired

4. General remarks

The public relations committee was assigned the task of preparing
communiques to be sent to the membership keeping them informed of the
progress being made from the time of the fire until the new clubhouse
was built and in Operation. During the fifteen month period before the
new clubhouse was Opened, more than twenty-five communiques were pre-
pared and mailed. The work of this committee received considerable praise
from the membership.

The visiting of other clubs that had recently built new clubhouses
was of considerable value to the Board of Governors. Although many ideas
were obtained, the greatest advantage of the visits to the board members
was the increased knowledge of a clubhouse Operation. In all, five clubs
were visited. At least one idea from each club was incorporated in the
final plans of our new building. Some of the mistakes which Officials of

the other clubs pointed out were avoided.

The Btitdtgg Commtttee. The formation of the Building Committee
was accomplished several days after the meeting of the Board of Governors.
The chairman of the committee was appointed by the club's president. The
members Of the committee were selected by the chairman. Both the appoint-

ment by the president and the selection of committee members by the chairman

10

were approved by the Board of Governors at a Special meeting.

The purpose Of the Building Committee is to represent the club's
Board of Governors and membership in the handling of all phases of the
building program. The existence of the committee is temporary in that
it functions only until the new clubhouse is occupied and finally accepted
as being complete in accordance with the construction contract.

The reSponsibility of the Building Committee is limited to the exp
tent that it only makes recommendations to the Board of Governors who
must make the final decisions concerning the many phases of the building
program. Because the building chairman assisted by his committee prepares
the recommendations and determines the list of alternatives available,the
importance Of the committee's work cannot be overemphasized.

The chairman of the Building Committee has certainly been the key
figure in the building program. He has been the owner's representative
in working with the architect, engineers, contractors, and decorator.

The appointment of the Building Committee chairman.must be the most im-
portant decision the president and directors make. Some of the important
qualifications which the chairman must possess are listed below:

1. Interest in the club

2. Time to devote to the building program

3. Ability to coordinate work of others

4. Understanding of building procedures

5. Attentiveness to detail

6. Familiarity with clubhouse Operation

7. Capacity to withstand criticism

11

The members of the Building Committee Should also possess some
degree of the qualities listed above, however, their principal con-
tribution Should be to supplement the abilities of the chairman.
Included as members of the committee were a university architect, a
building materials dealer, and a bank executive. In addition to the
Building Committee a Building Finance Committee (see Chapter XI) comp
posed of a certified public accountant, an attorney, and several bank
executives were available for assistance when needed.

The Size of the Building Committee, as with any committee, should
not be so large that it would impair the effectiveness of the work to
be done. It is important, however, that as many of the interests of the
membership as possible be represented on the committee. To fulfill this
last reSponsibility, a total of nine members were selected for the

committee.

12

CHAPTER IV

TEMPORARY FACILITIES

A building project such as the reconstruction of a clubhouse cannot
be accomplished in a few months. While it required fifteen months to
plan and construct the clubhouse at walnut Hills Country Club, some of
the clubhouses which.were visited required as long as twenty-fOur months
to build. In the meantime, some service to the membership must be given.

The most suitable provision for temporary facilities and services
varies with each club. One club visited used a building located a
distance from the club's prOperty, another erected a large tent and served
hamburgers and drinks, and a third club rented a mobile popcorn trailer
from which sandwiches and beverages were available.

At walnut Hills, a new maintenance building fer the grounds super-
intendant was constructed and utilized for temporary clubhouse facilities.
Plans for the building were approved three months before the fire. Con-
struction was to be accomplished over a three-year period with.most of
the work being done by the Greens Superintendant's staff. Following the
clubhouse fire, the Board of Governors decided to construct the maintenance
building immediately. Temporary partitions, used plumbing fixtures, and
temporary work areas were installed. The cost to adapt the building for
a temporary clubhouse was $2,200.00.

The building, constructed of concrete block, was 120 feet long and

32 feet wide. The pro shOp was 12 feet by 32 feet. The two locker and

13

restroom facilities were each about 16 feet by 38 feet. Long pipes were
installed in each restroom. The grille room was 32 feet by 70 feet with
three 16-foot overhead doors which (pened onto a temporary patio. The
grille was equipped with rented tables and chairs to serve approximately
ninety persons. The patio was equipped with five umbrella tables and
twenty patio chairs. Additional folding tables and chairs were rented
for Special parties to accommodate a total of 250 persons.

The food service Operation was planned as a sandwich or short-order
type Operation. The equipment included a gas-fired grill with two Open-
tOp burners attached, a small electric 15—pound deep fat fryer, a rented
automatic coffee maker, an electric food warmer used mostly as a roll
warmer, two 51-inch wide, double-door refrigerators, a galvanized 3-com-
partment sink for cleaning dishes and pans, and approximately fifteen feet
of front counter and fifteen feet of back counter equipped with storage
shelves. The front counter was used for buffets and as a waiter pick-
up station.

The service bar was located adjacent to the fead service counter.
Most all drinks were served. A small home-type refrigerator and a large
beer cooler were used to chill wines and beer. A pro-mix, soft drink
dispenser was used to reduce the need for bottle storage.

‘While it was not unusual to serve 150 persons a day, the largest
day was Labor Day when.more than 200 were served during the day and
another 200 were served at a cook-out buffet in the evening on the patio.
A cOpy of a typical menu used in the temporary clubhouse is shown on the
opposite page in Figure No. 2.

In addition to the temporary clubhouse, three truck trailers were

FIGURE 2
WALNUT HILLS COUNTRY CLUB

GRILLEIMENU

AEEETIZERS

Soup du Jour.............25 Chilled Fruit Cocktail..............35
Chilled mt Jmce00000025 FreSh Smmp COthailOOOOOOOOOOOOOOOSS

SANDWICHES
Gmlled CheeSGOOOOOOOOOOOBS BeefburgerOOOOOOO00.0.0000000000000060
Bacon, Lettuce & Tomato..50 Grilled Bacon & Cheese..............60

Bar-B-Q BeefOOOOOOOOOOOOOSO Ham & Cheesescoo00.0000000000000000070
Grilled Ham..............60 Harding Corned Beef.................70

* $ *
ENTREES (Includes Potato, Salad and Beverage)
walnut Hills Beefburger Special..................................1.15
Chopped Jumbo Beefsteak Saute in Butter, French Fried Onions.....1.35
Chuck wagon Steak with.MushroomS.................................1.50
Veal Cutlet Saute, in Paprika Sauce..............................1.50
Cold Pot Roast of Beef, Chef's Garnish...........................1.75
Breaded Shrimp, Shrimp Sauce.....................................1.95
Jumbo Frog Legs Saute in Butter, Tartar Sauce....................2.15
,Club Sirloin Steak Sandwich, 8 oz................................2.25
western Rock Lobster Tail, Drawn Butter..........................2.85
French Fried Potatoes Potato Puffs Cottage Fried Potatoes
Sliced Tomato Salad Cottage Cheese Salad Tossed Green Salad

Coffee Tea Milk

# i *

DESSERTS

Vanilla Ice Cream........25 Chocolate Sundae....................35
Pie du Jour..............30 Butterscotch Sundae.................35
Cheese & CrackerS........35 Pie Ala Mode........................Ҥ

14

borrowed and used for the storage of members' golf clubs. Installed
behind the building were temporary restroom facilities for the caddies.

The swimming pool was also Opened and Operated as in past years.
Considering the inconvenience of having the pool located nearly 300 yards
from the temporary clubhouse, the pool attendance was only about 12% below
the preceeding year.

The social events were planned as usual. Cookouts, dances, twilight
golf buffet suppers, ladies' day golf and bridge, and couples' bridge
were part of the adult program. Splash parties, record dances, and a
swim meet with another country club kept the interest of the younger set.

The temporary clubhouse was Open from May through January. It was
closed because of the lack of membership participation during the winter
season. The promotion of 50-cent drinks and low-priced dinners lured
some members each night and brought some regrets when the clubhouse was
closed.

Looking in retrOSpect, the writer believes now that the temporary
clubhouse should have been closed at the end of October when the golf
season officially closed. This would have permitted the temporary oper-
ation to pay for itself. Our Board of Directors felt that a minimum
house charge was not warranted with the temporary clubhouse. Less than
30% of the membership used the food service during the final three months.
Bar sales in December were less than $1,000.00. No service should be
offered in a club unless a substantial proportion of the membership seeks
the service.

The financial goal of any temporary facility should be to avoid loss.

Another goal should be that the temporary facility permit the membership

L5

to stay together by providing as many of the usual activities as possible.
Several of the members at walnut Hills who considered dropping their club
memberships stated that they remained in the club because of the adequacy
of the temporary facilities. Although the members are now enjoying their
new and modern clubhouse, they still remark of the good times enjoyed in

the temporary clubhouse

16

CHAPTER V

HIRING THE ARCHITECT

The need for professional help in planning and constructing a new
clubhouse cannot intelligently be questioned. Before coordinated planning
can begin, the assistance of a qualified architectural firm and a decorator
should be sought. The selection of the architect and decorator will be

discussed in these next two chapters.

Cgpsigeration in Selecting the Aachitect. The architect performs

many functions which can help determine the degree of success which the
new clubhouse will enjoy. Several of the functions which an architect
must perform are as follows:
1. To put ideas into a workable plan
2. To provide an architecturally and mechanically
sound building
3. To plan according to present building codes
4. To recommend competent contractors and
decorators
5. To supervise bid-letting and bid-Opening procedures
6. To supervise and coordinate the work of the decorator,
contractors, landscape architect, and foOd service
consultant to assure that the highest quality of

work is done in the least possible time.

17

The ability of an architect to carry out his duties is usually
determined on the basis of his reputation for past performances. The
fees charged by various architectural firms are normally based on,a
percentage of the construction costs and vary little within a parti-
cular location.

Once the planning of the clubhouse is underway, it will be necessary
to communicate with the architect almost daily. This communication may
be by telephone or in person in his Office or at the building site. The
availability of the architectural staff should therefore be an important
consideration.

Within the memberships of most clubs are members who are architects
or who are associated with architectural firms. Convincing arguments can
be made in favor of or against the hiring of a club member to perform
these services. To hire an architect on the basis of his membership in
the club may be detrimental to the membership as a whole. The architect
who is a club member should only be guaranteed fair consideration at the

time other architectural firms are considered.

Procedure in Selecting the Architect. The reSponsibility for selecting

the architect rests with the Board of Directors. To carry out this reSponsi-
bility, the Board of Governors at walnut Hills Country Club met for seven
hours one day to interview representatives Of thirteen architectural firms
interested in working on the new clubhouse.

Each architectural firm was assigned an interview time and given
twenty minutes to acquaint the board members with their organization and

experience. Approximately ten minutes was Spent discussing the organization

18

following its presentation. After all interviews were completed, a
general discussion was held evaluating the various architectural firms
represented. The Board of Governors then selected their architect.

The firms interviewed varied in size from a staff of three persons
to a staff of fifty-five persons. Except for one firm who quoted its fee
to be five per cent of the construction costs, all fees were quoted at
six per cent. The presentations varied from brief, verbal statements
of the architect's organization and experience to films and slides of
previous buildings. One architect submitted colored renderings of what
the new clubhouse might look like.

Letters were sent to each firm the following day thanking each for
their interest in the club and telling them of the decision of the Board
of Governors. The architect selected was also given a personal call from

the president of the club.

19

CHAPTER VI

PLANNING THE CLUBHOUSE

The Board of Governors is reSponsible for the type and size of club-
house constructed. Many costly features will be desired in the new
clubhouse, however, the construction and Operational costs must be in-
fluenced by the financial and social status of the club's members.

Members are stockholders in the club, consequently, they should be given
the Opportunity to approve or reject, through their voting rights, a
clubhouse plan which may require an assessment from them or which may not
be compatable with their social status.

The initial planning of the new clubhouse actually begins before the
architect is hired. Although the architect will draw the plans and pre-
pare the Specifications, he must be advised concerning the type and size
of facilities desired, the cost limitations, Special features to be incor-
porated in the plan, the type of architecture preferred, and the objectives,
of the club.

In order to satisfy the membership requests as much as possible, the
Board of Governors sent a questionnaire to each member. Of the more than
450 questionnaires mailed, only 134 were returned. Suggestions commonly
received were incorporated into the final plan. For example, many members
requested that the long walk up the hill from the parking lot to the club-
house be eliminated, and many members requested a covered entrance where

passengers could be discharged from automobiles be planned. AS a result

20

the building site was lowered eight feet, the enlarged clubhouse was ex-
tended toward the parking lot, and a Special drive and carport entrance
were incorporated in the plan. The clubhouse design was also in accordance
with the members' requests for a modern or a contemporary clubhouse.

The objectives of the club determine the clubhouse plan, the type
and size of facilities, the usage of the facilities, and the services
desired. The author, as manager of the club, was asked to prepare a list
of all facilities which the Board of Directors requested and determine
the recommended size of each. In addition, the manager was asked to pre-
pare a list of food service objectives for the club which were later used

to develOp the food service equipment layout.

fitting the Decorator. 'While the planning of the clubhouse was in
its initial stages, many questions arose which required answering by a
professional decorator. To reduce numerous changes which might have been
made in the future, a‘decorator was hired as soon as the basic clubhouse
plan was accepted.

In addition to supplying furnishings and fixtures, the counsel of the
professional decorator is essential in determining many of the building
features as follows:

1. Location Of electrical outlets

2. Location of Special lighting fixtures
3. Selection of lighting fixtures

4. Locations for wall clocks

5. Locations for television outlets

6. Selection Of wall finishes

21

7. Selection of colors of paint and fixtures

8. Determination of type of recess for draperies

9, Selection of floor tile colors

10. Determination of carpet and pad thickness for planning

of lockers, door clearances, and adjacent floors.

The availability and reputation are the primary considerations in
hiring a decorator. Although cost is also an important factor, various
arrangements can be made. One arrangement is to pay a decorating firm a
fee for counseling service only. Because the decorating firms also desire
to provide the furnishings, one of the following arrangements are usually
made;

1. Discount on list price
2. Cost plus percentage
3. Cost plus fixed fee

h. Combination of above

Cost price of furnishings to a supplier such as a decorator is
normally 50% of the list price. In addition, suppliers are offered an
additional discount ranging from 2% to 5% for cash or payment within ten
days. Many manufacturers give their suppliers an annual rebate for volume
sales.

Meet decorators quote a discount of 40% on list price and agree to
pay the freight, erection, and installation of furniture. Some offer a
45% discount with the client paying the freight. The cost plus per-
centage is another way of computing the discount on list price. Cost

plus 10% would be the same as a b5$ discount on list price.

22

The agreement made by walnut Hills was based on a cost plus fixed
fee with a stipulation that if the cost exceeded $50,000.00, then an
additional fee of 5% for all costs over $50,000.00 would be paid. The
amount of the fixed fee was $5,000.00. The agreement further stipulated
that all invoices be forwarded to Walnut Hills for direct payment which
would give the club the benefit of cash discounts. The club also agreed
to pay freight charges. 0n the basis of a budget of $80,000.00 for
furnishings and fixtures, the club would pay $6,500.00 for decorator

fees plus freight charges less cash discounts.

23

CHAPTER VII

BIDDING AND AWARDING THE CONTRACT

Chapter XI outlines the clubhouse plan and explains the many features
incorporated in the plan. Before construction can begin, the contract
must be awarded, a landscape plan must be develOped, financing must be
arranged, and preparation of the building site must be accomplished.

These procedures will be discussed in this and the following three
chapters.

In constructing a clubhouse, it must be recognized that a board of
directors has the prerogative to select a contractor in any manner desired.
The procedure of bidding can be waived and a contractor selected, however,
it would probably be a difficult task for the directors to convince the
membership that its action were in the best interest of the club.

There are two methods of bidding. These are the Open bid and the
closed bid. The Open bid invites all contractors an Opportunity to bid
the job if they are interested. The closed bid permits only those con-
tractors selected by the club an opportunity to bid. Regardless of the
method used, the club should make it understood that any or all bids may
be rejected.

The contractors may also be asked to bid on separate parts of the
total building project. There are primarily four divisions in a building
project which may be bid separately. These divisions for which separate

contracts might be awarded are listed as follows:

24

1. General or architectural
2. Mechanical
3. Electrical

4. Food service and bar equipment

The Board of Governors at Walnut Hills Country Club decided on the
"closed bid" method upon the recommendation of the architect and building
committee. Thirteen general contractors, six mechanical contractors, five
electrical contractors, and nine food service equipment contractors were
invited to bid. Except for the food service equipment contractors, all
contractors maintained offices in the Greater Lansing area. The general
contractors were permitted to bid on the total project less the food
service equipment or to bid on the architectural part of the contract
only. The contractors invited to bid were selected on the basis of the
architect's recommendation plus the preference of the Board of Governors.

The contractors were given about three weeks to figure their bids.

A time and place was announced for bids to be returned. Because of the
contractors' attempt to keep bids secret, nearly all of the bids were
received just before the deadline.

The opening of the bids may be done at an Open or closed meeting.
An Open meeting would permit the contractors and other interested parties
to attend. The Board of Governors decided that a closed meeting would
be held with only the directors, building committee members, manager,
and the architect present.

Because the contractors were selected to bid, it was assumed that

all were qualified and reputable firms and the low bidder would probably

25

be awarded the contract. If all the bids had been rejected, then three
courses of action would be available. The plans could be again put out
for bid, the plans could be modified and put out for bid, or a contractor
could be hired to construct the clubhouse on a cost-pluS-fixed fee or cost-
plus-percentage basis.

Upon completion of the bid-Opening, the Board of Governors voted
to select the low bidders on each of the four divisions of the building
project mentioned on the preceeding page. The general contractor agreed
to act as the coordinator for all contractors at no extra charge. All
contractors were required to secure a performance bond.

Many arguments were heard concerning the advisability of incorpor-
ating a penalty clause in the contract to help assure that the buidling
will be ready for occupancy in a reasonable length of time. The ad-
vantage of a penalty clause is Obvious. The principal disadvantages
are that the contractors may attempt to cut the quality of their work
for expediency, that the contractors often figure a certain amount into
their bid for protection if the completion date seems doubtful, and that
there is often a question as to who is to blame for delays when they
occur. Considering both arguments, the Board of Governors decided to

omit a penalty clause from the contract.

26

CHAPTER VIII

HIRING THE LANDSCAPE ARCHITECT

The importance of the services of a professional landscape architect

cannot be overemphasized. For this reason a separate chapter is included

in this thesis even though the discussion will be short.

The services of the landscape architect can be used in several ways

as follows:
1.

2.

6.

To beautify the basic building

To develop traffic flow to, from, and around the

clubhouse

To recommend plantings complimentary to the style
of architecture

To develOp Size and shape of walks and steps

To advise on the most effective means of lighting
around the club

To establish prOper elevation grades

The employment of a landscape architect can be done on the basis

Of purchasing a landscape plan which can be develOped over a period of

time or on the basis of purchasing the services of the landscape architect

to provide the necessary plantings, sod, trees, walks, and lighting.

Usually when the landscape architect provides all Of the materials, the

cost of planning is hidden in the cost of the services performed.

27

The Board Of Governors purchased a landscape plan which the greens
committee will follow in developing the landscape around the new clubhouse.
The cost of the plan was $700.00. It is anticipated that the landscape
program will take several years to complete.

The selection of the landscape architect was made upon the recommen-

dation of the building architect.

28

CHAPTER IX

FINANCING THE CLUBHOUSE

The plans for a new clubhouse must necessarily be developed within
certain cost limitations. The building architect estimated that the cost
of our building would be about $20.00 per square foot for the main club-
house and about $15.00 per square foot for an attached wing housing the
pro shOp, club storage room, youth center, and pool dressing rooms.
Although the actual bids were about 10% above the architect's estimate,
the Board of Governors were unable to agree on any sizeable cutback in
the original plans.

That the bids exceeded the estimated cost is not an unusual circum-
stance. For this reason, it is impossible to establish a definite plan
to finance the building program until the bids are opened and the contract
awarded.

As soon as the planning for the financing can begin, the first step
should be to seek the advice of competent counsel to develOp a sound
financing plan. These persons can usually be found within the member-
ship Of the club. The building finance committee at Walnut Hills consisted
of a certified public accountant, an attorney, and three bank officials.

There are three general considerations which must be given to the
financing of a clubhouse. One is the determination of costs er the need
for money, another is the determination of the sources of income necessary

to equal the costs, and the third is the knowledge of the laws regarding

29

the financing of social clubs.

The need for money should be planned to determine both the total
amount of money needed and a schedule of when the money must be expended.
The following factors will determine the total costs and the cash dis-
bursement schedule:

1. Contract amounts and payment schedule
2. Architect fees and payment schedule
3. Decorator fees and furnishing costs
4. Supplies and merchandise inventories

5. Initial Operational costs

Both the amount of the construction contract and architect fees are
known at the time the contract is awarded. The payment schedule to the
one or more contractors and to the architect is usually included in the
contract with each and is normally based on a percentage Of work completed
each month less a percentage (in our case 10%) withheld until the entire
building is accepted. At the time of this writing, the new clubhouse had
been in Operation for two months and the building had not been accepted
nor did it seem likely that it would be accepted for at least two more
months.

The type of agreement with the decorator would determine the dis-
'bursement schedule. Because we agreed that all invoices would be sent
directly to the club, payment was made immediately to receive the benefit
Of the cash discounts. Delivery of the furnishings was scheduled as only
'when the merchandise was needed to delay the necessity for payment as late

as possible.

30

Purchases of supplies and inventories were made only a few weeks before
the anticipated Opening. Because the club recorded all sales on charge
accounts, the cash from sales was not received for several weeks after
opening. Accordingly, suppliers were not paid for their first month
deliveries until nearly sixty days after the club was in operation.

The payment for some expenses, however, cannot be delayed. 'Wages,
taxes, alcoholic beverages, insurance, and utilities require prompt pay-
ment. The budget should include enough cash to meet these expenses for
at least the first fortybfive (45) days of operation.

After the cash requirement has been determined, the next step is to
investigate the possible sources of income and time when the income would
become available. The sources of income considered are listed below:

1. Fire insurance from former clubhouse

2. Cash on hand
. Other current assets, especially accounts receivable
. Membership fees from new members
. Dues and Operational earnings

. Mortgage

\1 ~O\ U! F W

. Membership assessment

At Walnut Hills the cash on hand, accounts receivable, and fire
insurance money were available before the planning phase of the building
project was completed. Income from membership fees was nominal until the
building was about ready for Occupancy. Dues and Operational income was

estimated to be a certain amount each month.

31

Except for the money received from the fire insurance which amounted
to about thirty per cent of the cost of the new clubhouse, most of the
financing was accomplished with a mortgage and a membership assessment.
The Board of Directors determined the maximum mortgage which the club
should carry, and then investigated the availability of such a mortgage.
After learning that the maximum mortgage could be obtained, the directors
then made plans for the membership assessment.

In computing the amount of assessment per member, the building finance
chairman estimated that ten per cent of membership would resign. The
estimate, based on the experience of three of the clubs visited, was
approximately two per cent above the actual number of resignations. The
largest loss, on a percentage basis, was from the social and non—resident
memberships.

Three methods of assessing the membership were considered and are
listed as follows:

1. Straight assessment
2. Sale of bonds (interest or non-interest bearing)

3. Issue of certificates of value

After considerable discussion, the Board of Directors voted to issue
a certificate of value to each member upon payment of the assessment in
full. In the event a member resignedfrom the club after being issued
his certificate of value, he would return his certificate to the Board of
Directors who would resell his certificate to the next new member. The
value of the certificate when resold by the club is determined by the
directors at the time. If the waiting list of prospective members is

large, the value of the certificate may be more than the original assessment.

32

On the other hand, if resignations exceed the availability Of prospective
members, the certificate could be of no value. Because the value can be
regulated by the club's directors, the issue of the certificates is not
carried on the books as a liability of the club.

Payment of the assessment permitted the member three Options. One
was payment in full, the second was to pay one-half on July 15 and the
other half on October 15, and the third was to borrow the total sum from
one of three cOOperating banks at a straight 4% interest to be paid back
on monthly payments for three years with payment guaranteed by the club.
Certificates of value were issued jointly to the member and to the bank
where the option to borrow was exercised. At least one-half of the assess-
ment was required by July 15 for the four reasons listed below:

1. To have cash available to pay construction costs
as they become due

2. To withhold using the mortgage money until last
to save the interest expense

3. To determine as soon as possible the number
of members who were planning to resign

4. To levy the assessment at a time when the club's
facilities and services were of the greatest

value to the member

The two questions most asked by the members were, "What will the
assessment be?“ and "What will the dues be when the new clubhouse is in
operation?" Because dues would not be increased until the clubhouse was
in Operation and thus permit the Board Of Directors an opportunity to

justify any increases with the availability of records showing income and

33

expense, the question of dues could be more easily answered. The size

of assessment, however, required considerable selling to the membership.

A brochure was printed illustrating the architect's materials used in con-
structing the clubhouse, emphasizing special features about the clubhouse,
and explaining the finance program adOpted by the Board of Directors. A
committee was appointed to call on each member planning to resign to be
certain that member was prOperly informed before the resignation was

accepted. The work of this committee saved several memberships.

34

CHAPTER X

PRELIMINARY CONSTRUCTION PROCEDURES

Before the actual construction of the new clubhouse begins, several
preliminary procedures must be accomplished. Contract limits for con--
struction must be determined, the building site must be restricted from
pedestrian traffic, and the building site must be razed.

Usually, the architect specifies the contract limits within which
the contractors must work. The Board of Directors should approve these
limits through the building committee working with the architect. At
'Walnut Hills, the contractors were required to use snow fence to enclose
the building site and to post "Keep Out" signs. By means of bulletin
board notices and direct mail, members were asked to stay away from the
building site.

Although most people are interested in watching construction work in
progress, club members are especially interested in the progress of their
new clubhouse. Because each member is a part owner of his club, the task
of restricting him from the building site is Often very difficult and
requires the use of considerable tact. As soon as the contract is
awarded, the contractor is given control of and responsibility for the
area within the contract limits. Although the reasons for restricting
pedestrian traffic should be obvious, they are listed below:

1. To prevent injury or death
2. To avoid interference with construction workers

3. To avoid damage to building or equipment

35

The razing of the building site is done to prepare the site for
construction. This work is usually incorporated in the general con-
tractors contract and includes the removing of old buildings, trees,
walks, driveways, and underground pipe and electrical lines.

At walnut Hills it was also necessary to remove considerable dirt
from the site to establish the necessary elevations and grades. The rich
top soil was moved adjacent to the building site to be replaced around
the clubhouse when the construction was completed. The remaining dirt
was moved to designated low areas on the club property as recommended
by the greens committee.

The Board of Directors selected three persons to work with the archi-
tects, contractors, and decorator. These were the club president,
building committee chairman, and the club manager. Each architect, con-
tractor, and decorator must know for whom he is working. Because private
clubs are often criticized for having many bosses, the club's representa-

tives must be determined and announced in the beginning.

36
CHAPTER XI

THE CLUBHOUSE PLAN

The purpose of explaining the clubhouse plan is to mention many of
the details which should be considered in planning each of the facilities
provided in most clubhouses. 'Because such factors as terrain, location
Of the building relative to the club entrance, swimming pool, golf course,
and desirable views will vary with every club, the drawings of the club-
house layout are omitted.

walnut Hills' new clubhouse consisted of two buildings connected
only at the roof line to give the appearance of one large building and
for the sake Of architectural beauty. The main building consisted Of
two floors built into a hill and a smaller building on level with the
upper floor of the main building.

TO accommodate the desired facilities, several factors dictated the
building location and layout and are listed as follows:

1. Location of existing parking lot

2. Location of existing swimming pool

3. Golf course layout

4. Desired views from dining and other areas

5. Ability to provide necessary services

In explaining the clubhouse plan, each facility or room will be

discussed individually.

37

Men's Locke; R093. The size of the men's locker room was determined
from the number and size of lockers, the restroom and shower facilities
required, the card area desired, the size of the attendant's work area,
and the storage facilities needed. The locker room consists of 380 full-
sized lockers and 70 two-person lockers which are used primarily for
guests.

Restroom facilities include three lavatories, three urinals, and
three water closets. Under a full length mirror over the lavatories is
a shelf for hair tonica Shaving supplies, and combs. The shower room
has eight shower stalls with recessed soap holders and.a large area for
drying. The card area is 8' x 22' providing room for two standard poker
tables 49" in diameter.

The attendant's work area is 8' x 10' and includes a power buffing
machine and two work counters with storage cupboards below. The work
area is Open to view and is located in the center of the locker room
near the shower, restroom, and card playing facilities.

The storage room, located adjacent to the attendant's work area,
is 6' x 8' and consists of shelving for the storage of towels and other
supplies.

The aisle between each row of lockers is six feet wide which
accommodates a full-length bench and sufficient space to walk between
the bench and the row of lockers. Except for the restroom and shower
room floors which are covered with ceramic tile, all floor Space is carpeted
with a heavy clipped-pile carpet capable of withstanding heavy golf spike

traffic.

38

The lockers were not included in the original contract. To avoid
the architect and contractor's fees, the layout and specifications were
prepared by the club manager and then bid direct by the manufacturers.

To keep the cost to a minimum, the lockers were planned so that as many

as possible were installed using one back panel for two lockers and
attaching the lockers in sections using one side panel between two lockers.
Special features of the lockers are louvred doors and perforated back
panels for complete ventilation, top and bottom shelves, one coat rod and
three hooks per locker, flat key locks, name card holders, locker numbers,
and the installation of nuts and bolts for a mirror which a member could
purchase from the club if desired. The lockers were mounted directly

on the floor without a special base or legs.

Ladies Locker Room. The size of the ladies' locker room, although
smaller than the men's locker room, was determined by the number and
size of lockers, the shower room and restroom facilities, the attendant's
work area, storage facilities, and the desire for a ladies' lounge.

Over 200 full—size and 60 two-person lockers were installed in the
ladies' locker room. The lockers contained the same features as the men's
lockers.

The shower room contained eight two-compartment shower stalls. The
front compartment is equipped with a small bench and coat hook and is
used as a dressing compartment. A full-length curtain in front Of the
dressing compartment permits privacy, and a full-length curtain between
the two compartments protects the dressing compartment from the shower

water.

39

The restroom area contains three lavatories, three water closets,
and two hair dryers. Mirrors for make—up are provided at each end of the
locker room and accommodate a total of thirteen persons.

The locker attendant's work area and storage room are similar to
the facilities of the men's locker room except that power shoe-polishing
equipment is not provided.

A special feature of the ladies' locker room is a 15 foot wardrobe
for the hanging of gowns and party dresses which cannot be kept conveni-
ently in the lockers. The wardrobe can be locked by the attendant.

The ladies' lounge is 10' x 15' and included carpeting, a table for
card playing, two reading chairs, and a large couch.

Employee Locker Rooms. Each of the two employee locker rooms contain
fourteen two-person lockers and restroom facilities. The men's locker

room has a shower, and the ladies' locker room has a cot. The floors are

concrete.
POO; Bathhogse Facilities. The bathhouse is located adjacent to the

pool and bathing deck in the small building connected to the main club—
house.

Both the boys' and girls‘ bathhouse facilities include basket
lockers, coat rods for hanging clothing, and restroom and shower facilities.
The boys have gang—type showers, and the girls have two-compartment showers
similar to the ladies' locker room. Benches are provided for both. The
locker baskets were included in the bids received for the lockers.

Dining Room Facilities. Food service was planned for six different

rooms or areas as listed below:
1. Member Dining Room
2. Banquet Rooms
. Golfers' Grill and Stag Bar

3

4. Patio

5. YOuth Center
6

. Men's Locker Room

The member's dining room.and the banquet rooms are the only areas
where food service is provided year round. The other areas are serviced
only during the golfing season and when the swimming pool is Open.

In planning dining room facilities, a rule of thumb guide should be
to allow 15 square feet per person for regular table service and 10 square
feet per person for banquet service. The type of tables and chairs and
the use of support columns in the room will have some affect on this guide.
The member's dining room is 900 square feet in size and normally accommo-
dates about 60 persons. The banquet room is about 1,200 square feet in
size and will accommodate from 110 to 130 persons.

The member's dining room is located adjacent to the ballroom which
is used also for serving members and their guests on occasions when the
dining room is not capable of handling the larger number of diners.

The member's dining room, the banquet rooms, and ballroom are
located on the second floor of the main building along with the main
kitchen, lobby, cocktail lounge, coatroom, and administrative offices.
Restroom facilities for men and women, exclusive of the locker rooms,

are also located on the second floor.

41

The Mixed Grill, Stag Bar, patio, and men's locker room are located
on the first floor. The Mixed Grill seats 60 persons, the Stag Bar seats
35 persons, and the patio is furnished to accommodate 32 persons. These
three areas are serviced as one area. A small service kitchen, equipped
with a gas-fired grill, an electric deep-fat fryer, and a small refriger-
ator is Opened to provide food service to these areas during peak periods.
‘When the demand for food service is slack, orders are transmitted through
an intercom to the main kitchen on the second floor. Food is then sent
from the main kitchen on a dumbwaiter elevator. All soiled dishes are
sent to the main kitchen on the dumbwaiter. These facilities are open
only during the golf season.

The men's locker room, located adjacent to the Mixed Grill, provides
food service either from.the service kitchen or from the main kitchen.

An intercom is located in the attendant's work area permitting the atten-
dant to call to the Mixed Grill or main kitchen.

The Tenth Center is located in the small‘building adjacent to the
swimming pool sundeck. The Ibuth Center Bean is arranged to permit
approximately 40 children to eat in the room at one time. read service,
consisting of sandwiches, ice cream, individual cakes and pies, soft
drinks, and milk, is available either in the room or through a service
window to the sundeck. The Ibuth Center Room is open during the summer
months only-when the pool is Open.

One of the most important considerations given in planning the
dining facilities was the ease of adapting one or more of the rooms for
any type service. A buffet, banquet, and table service can be provided
for any number up to 350 persons simultaneously; Another important

42

consideration was that as few as two or three persons could Operate the
main kitchen during slack periods.

Fooa Preparation Areas. As mentioned in the discussion of the
dining room facilities, the two principal food preparation areas are the
main kitchen and the small service kitchen.

In most cases, the planning of the food service equipnent and layout
should be handled by a food service consultant. Normally, the architect
will hire such a person to design the kitchen. With the help of sugges-
tions from others in the food service profession, the manager of walnut
Hills designed the kitchen equipment and layout. Although the club manager
should normally advise on matters pertaining to the kitchen design, he
should not be expected to have the knowledge necessary to assume the re-
sponsibility for the actual design.

The main kithcen, located on the second floor, is approximately
1,200 square feet in size. Omitting that portion of the kitchen occupied
by the walk-in refrigerators and employee dining room, the kitchen is
almost square which is usually the most ideal type room for kitchen
planning. The location of the kitchen forms an "L" connecting the ball-
roomamember dining room with the banquet rooms. One pair of access doors
lead to and from the banquet rooms and another pair of access doors lead
to and from the ballroom-member dining room.

The equipment specified is all heavy-duty type equipment. The
additional expenditure for the best equipment is a sound investment. The
inconvenience and expense of maintaining inferior equipment added to the
cost to replace the equipment at an earlier date will more than offset

the initial cash outlay.

43

The type, amount and capacity of the equipment will depend upon the
size of the club and type of menu desired. The equipment at walnut Hills
was planned to efficiently serve an average number of persons on a good
day during the peak season with a capacity for fast recovery of soiled
dishes and clean—up. A kitchen is over-equipped if it is planned to serve
and recover easily from the few exceptionally large days which most clubs
experience during a year. An over-equipped kitchen must necessarily be
larger than needed and may result in being an over-staffed kitchen during
the few months when sales are down.

Sufficient storage is necessary for an efficient operation. Lack
of storage facilities is probably the most commonly heard complaint of
club managers. Adequate refrigeration storage reduces food spoilage and
Often permits advance food preparation when the work load is slack thus
effecting a savings in extra labor when the work load is heavy. Sufficient
linen storage reduces laundry costs caused by wrinkled table linen which
cannot be used. Proper storage facilities for china and glassware reduce
breakage. Adequate storage for dry and canned foods permits ease of in-
spection of inventories and reduces the possibility of food spoilage Often
caused by the lack of inventory rotation and unsanitary conditions.

walnut Hills planned well for storage facilities. A three compart-
ment, 8' x 18' walk-in refrigerator provided one compartment, 6' x 8', for
salad and dessert preparation; one compartment, 8' x 8', for meat and sea-
food storage; and a middle compartment, 4' x 8', Opening into the meat
compartment for freezer storage. The main storage room is located near
the receiving entrance and is approximately 16' x 22'. A wire cage, 16' x 8',.

is located in the back of the room and contains about 32 feet of adjustable,

floor to ceiling shelving. The larger section of the room is used for
the storage of linen and miscellaneous supplies and equipment. Chinaware,
glassware, and silverware are stored in either the kitchen or in dining
areas where they are used.

Another storage room is provided for garbage and trash. Although the
ideal situation is to keep these items in a refrigerated room, the club
did provide a ventilated room complete with hot and cold water and a floor
drain for refuse disposal. An incinerator for burning paper and some
garbage is also included. Although all odor cannot be contained, especially
on busy days, the unsightly and unsanitary conditions found around most
food service establishments are significantly reduced.

The service kitchen located in the Mixed Grill was mentioned pre-
viously and is planned as a one-man Operation during most of the golfing
season. The service kitchen, approximately 10' x 12' in size, is used
both to prepare short order items and to service a sandwich buffet
frequently featured for the Mixed Grill and Stag Bar.

Special features of the kitchen areas are the employee dining room
which seats eight persons, the quarry tile floor and epoxy painted
wall surfaces which permit ease of cleaning, and an acoustical ceiling to reduce
any kitchen noise.

Bar Service. Bar service is available in all areas except the YOuth
Center. To adequately provide this service, three completely equipped and
inventoried bars are ready for use.

One bar is located in the cocktail lounge, which seats approximately

75 persons, and services the cocktail lounge and member dining room. A

45

service bar occupies a small room next to the banquet rooms which it
services. After raising a small window, the service bar is ready for
operation. In addition to providing a facility for preparing and serving
mixed drinks, the service bar is also utilized for preparing punch and
other special drinks for receptions and other events.

The third bar is located in the Fixed Grill and the Stag Bar. The
locker rooms, patio, Mixed Grill, and Stag Bar are serviced from.this
bar. The front bar is divided by a paneled partition separating the Mixed
Grill and the Stag Bar. Members sitting at the bar in both rooms are
serviced by the same bartender.

The storage requirements for a bar operation depends upon several
factors. The storage area required for liquor and wine depend upon
variety of goods handled and the frequency of pyrchases. Usually regular
shelving is sufficient except for some wines and champagnes which should
be stored on their sides.

Beer storage facilities also have varying needs depending upon the
size of purchases of each brand and the number of brands carried. The
use of throw-away bottles eliminates the need for storing large quantities
of empty bottles. Soft drink storage requirements can be greatly reduced
by the use of syrups in carbonic despensers or the use of the pre-mix
dispensers which draw mixes from purchased preamix containers.

on Shop. The pro shOp is located in the small building connecting
the main building. One entrance to the pro shOp is opposite the entrances
to the men's and women's locker rooms. The connecting roof provides

cover going to and from the locker rooms.

46

The pro shop is 600 square feet in area plus an Office for the golf
professional, a merchandise storage room, and a golf club cleaning and
repair room equipped with a work bench, and a two compartment sink in-
stalled only two feet above the floor. The member club storage room
adjoins the club cleaning room and has a capacity for storing nearly 500
sets of golf clubs.

One of the outstanding features of the pro shOp is its three walls
of window permitting excellent views of the first tee, the putting green,
and both number nine and number eighteen fairways from tee to green.

The windows in the pro shop are glazed with a grey, tinted glass which
is used throughout the clubhouse to reduce glare and heat.

The caddie facilities consist of an open shelter with restroom
facilities provided. Because of the clubhouse being new, the area
which will become the play area for the caddies has not yet been de-
termined.

Adminiapgatiye Offigaa. The administrative offices are located on
the second floor of the main clubhouse and consists of three Offices.
The general office includes desks for the bookkeeper and the clerk-typist
and an information counter. The work room is to the rear of the general
office. The billing machine, offset duplicator, addressograph, another
typist desk, and the storage cupboards for Office supplies are located
in the work room. The manager's Office is also located next to the
general office and is equipped with a desk, a small two-drawer file, and
two interview chairs.

The controls for the background music, public address system, and

paging system are installed in the general office. Incoming telephone

’47

calls are received in the general Office.

The administrative function is the heart of the club Operation.

The club Office is the information center of the club. Through its book—
keeping procedures, the Office provides information to the manager and
his department heads and to the Board of Directors. Through bulletins,
post cards, letters, and personal contact, members are informed on all
club matters.

Increasing administrative expenses should be sufficient reason to
give careful consideration to the planning of the Office facilities.
Because of the government's increased concern regarding the tax deduc-
tions taken by members for club dues and entertainment expenditures, the

work load of the office staff will certainly become greater.

CHAPTER XII

PREPARATION FOR OPENING

Many plans and procedures must be established and supplies purchased
before the new clubhouse is Open for business. A few of these which will
be discussed in this chapter are listed as follows:

1. Organization of staff and responsibilities
2. Establishing personnel procedures
. Selecting the staff

. Preparation of a pre-Opening training program

3
L;
5. Food and beverage cost control procedures
6. Hours of Operation

7. Purchasing supplies

8

. The grand Opening

Organization of Staff. The organizational chart illustrated in Chapter
I is the particular organizational plan used at walnut Hills. The organi-
zational structure is based upon the breakdown of responsibilities and work
areas. Each club must select the organizational plan which will be best
for its type of operation. For the organization to function effectively,
it must be well planned, and the plan must have an Opportunity to work.
Responsibility must be assigned at each level of the organizational

plan. Authority commensurate with the responsibility must also be given.

49

Each member Of the organization must have the capacity to carry out his
assigned duties and responsibilities. If the organizational plan is a
good plan, then any weakness in the operation is usually due to an indi-
vidual's weakness in fulfilling certain of his responsibilities.

Personna; Procedures. Before employing a new staff, definite pro-
cedures and policies concerning personnel matters must be established.
These include employment and dismissal procedures; wage policies; fringe
benefit policies such as vacation pay, sick leave, meals, and insurance;
and working hours.

At Walnut Hills, all prospective department heads and employees not
assigned to a department head are interviewed and hired by the manager.
All other prospective employees are interviewed by the department head for
a particular job in his department. The applicants for the position are
then screened at a meeting of the department head and club manager. The
club manager will then interview the best qualified applicants (usually
three or four) and again meet with the department head to discuss the
applicants. The department head will make his recommendation, and if he
lcan justify his recommendation, that person is hired.

Any decision to dismiss an employee is made by the manager. A de-
partment head can make a recommendation to the manager to terminate an
employee's employment provided that good reason can be shown. In most
cases the manager will speak with the employee and warn the employee of his
failures. If the employee cannot correct his weaknesses, his employment
is terminated. Every club makes an investment when it hires and trains
a new employee and should use some degree of caution in terminating members

of its staff.

50

Policies affecting wages and other employee benefits will depend upon
several factors. Geographical location and union influence are the princi-
pal factors. At'walnut Hills, wages are competitive with the wage scale
paid in the lensing area. The wage or salary Of every employee is deter-
mined by the club manager. Except for an insurance program approved by
the Board Of Directors, employee benefits such as vacation pay, sick leave,
meals, and uniforms are left to the manager's discretion.

Paid vacation time is earned at the rate of one-half day per month
for all employees, except department heads, fer the first twelve months
Of employment and one day per month beginning the thirteenth month Of
continual employment. Department heads receive one day'per'month.

Meals and uniforms are furnished to all employees by the club. Sick
leave is paid at the discretion Of the manager. Except fer department
heads, no employee is paid for time Off until the employee has been employed
for several months and the manager is assured that the employee's absence
is due to bona fide illness.

‘Wbrking hours for all employees is determined by the manager. Mbst
employees work 48 hours per week.

figlggting_jhg_fltgff. .After the organisational structure and the
personnel procedures are known, the process Of'staffing the club can begin.
Several factors which are suggested in selecting the staff are listed below:

1. Consider former employees
2. Be selective according to Objectives
3. Employ’department heads first

4. Utilize department heads in hiring employees

51

walnut Hills Country Club enjoyed many successes prior to the fire.
One reason for these successes was the competance of many Of the employees.
Although some of the former employees were not available or considered for
reeemployment, most of the former staff was rehired. Their knowledge of and
experience in the club Operation was of considerable help in Opening the
new clubhouse.

The greatest asset to a club manager is a competent staff. The im-
portance of selecting an employee who is well qualified for a particular
position cannot be emphasized too strongly. The task of locating these
persons is difficult and should not be delayed until a few weeks before
opening.

As soon as the department heads are selected, the job of filling other
positions should begin. There are many methods of advertising for pro-
spective employees. Newspapers and trade magazines are the most commonly
used methods. One method which is Often the most effective is word-of-
mouth advertising. walnut Hills employed three excellent employees through
word-Of-mouth advertising. Regardless of the media which brought in appli-
cants, the hiring procedure explained previously utilizing department heads
to conduct the first interview was followed.

Pre-ogeaing Tzaiaing Program. Because the new clubhouse is new to
all employees, a training prOgram should be conducted before the Opening
to assure a high standard of performance within each department.

The training program at walnut Hills included two days of training
before opening. Part of the prOgram provided for instruction in the back-

ground of the club and a familiarization of all departments within the

52

organization. The remainder of the program was devoted to instruction in
the employee's duties and repeated drilling of these duties.

Although most of the employees were on duty at least two days prior
to the opening date, the construction and interior furbishing of the club-
house was not complete. As a result, the training program was not conducted
as planned. Most of the employees' efforts were devoted to cleaning and
getting the physical structure of the clubhouse ready for the opening. A
club manager would not experience the Opening of a new clubhouse without
such a pro-Opening training program more than one time.

onceauraa for Fooa and Beyegage Cos; Contgol. The primary purpose
of food and beverage controls is to assure that the right merchandise is
purchased at the lowest possible cost and that all merchandise purchased
is converted to sales. A sound system of controls will provide the manager
with the necessary information to take action if the goals of the food and
beverage Operation are not being met.

The control system which would be the most effective for a particular
club may vary from a system used by another club. Both "too little" and
"too much" control can be expensive. The expense of a control system must
be less than the savings it effects.

The first step in setting up a food and beverage cost control system
is to analyze the entire Operation. National accounting firms, such as
Horwath and Horwath, specialize in the hotel and food service industry and
may be employed to establish a system which is best for a particular Oper-
ation. Because a detailed outline of a cost control system would be ex-
tremely lengthy, the reader is encouraged to read "How to Increase Profits

with Portion Control" by D.C. Keister and "Profitable Food and Beverage

53

Operation" by Broadner, Carlson, and Maschal.

Hpups of Qperation. Naturally the ideal hours of Operation in a club
are when the services of a particular area of the club will be utilized.
All services cost money and most club directors recognize this. For example,
few clubs provide food service as late in the evening as they provide bar
service. The difficult task is to determine the times when the various
services should be available.

The club manager should continually analyze all services of the club
and recommend any changes in the hours of Operation to the Board of
Directors. In making his recommendation the manager should advise the
directors of the savings that his prOposed change would produce. Because
the club members own the club and elect a board of directors to represent
them, the final decision should be theirs to make. The club manager should
be responsible to provide information necessary for the directors to make
an intellegent decision.

Purchasing Suppliea. Considerable work is necessary before supplies
and miscellaneous equipment can be purchased. Early in the planning stages
for the new clubhouse, a finance program was established. One consider-
ation in determing the need for capital was an estimate for the purchase
of supplies and small equipment. The estimate was computed by the club
,manager and based on a list of supplies needed and an estimated cost for
the many items.

‘With the assistance of catalogs and department heads a final list of
necessary supplies was prepared showing the quantity and description of

each item. Several price quotations were Obtained for most items. A

54

general breakdown of the items is listed as follows:
1. Chinaware, silverware, and glassware
2. Miscellaneous kitchen and bar supplies
3. Maintenance and janitor supplies ‘
4. Office supplies

5. Locker room supplies

The selection of the Chinaware, silverware, and glassware was made
by the decorator and approved by the building and executive committees.

The selection of all other supplies was made by the club manager with
assistance from the various department heads.

The Opana Qpening. As the completion of the construction and decor—
ating of the new clubhouse approaches, many ideas and plans are cOnSidered
in preparation of the Opening. The interest of the membership reaches its
highest pitch. Believing that the first impression is the most important,
the directors were anxious that the greatest effort would be made. Because
the Opening was delayed twice causing the Opening to be eighteen days after
the originally scheduled date, the eagerness of the members increased.

The new clubhouse was Opened in the evening with only the bars in
Operation. The tables in the member's dining room were set up with com-
plete service to enhance the beauty of the room and to display the china-
ware, silverware, and glassware. Guided tours were carefully planned and
conducted by members of the Board of Directors and building committee and
their wives, representatives of the architect's firm, and the decorator.
Handout sheets were given to each person illustrating the tour route and

explaining points of interest along the way.

55

The doorman in his tuxedo and shined shoes supervised his parking
attendants who parked and returned the automobiles. Approximately 1,100
persons made the tour, and everyone was ready on time with the exception
of the building committee chairman and the club manager who were still

in their Old garb tidying up the boiler room.

56

CHAPTER XIII

PROSPECTS FOR THE FUTURE

For the first two months of Operation in the new clubhouse, food and
beverage sales were almost double the same two-month period in the former
clubhouse. Although expenses increased because of the larger clubhouse
and the increased volume of sales, the net income from the food and bev-
erage Operation was greater than the net income for any twelve month
period in the former clubhouse.

There are several reasons for this increase in sales. One is the
additional eating and bar areas which appeal to the likes of more of the
membership. Another reason is that many members postponed most of their
entertaining until the new clubhouse Opened. The principal reason for
the large increase in sales is the desire for members to see the new
facilities and to show them to their friends.

Daily sales have declined after the first two months. Not including
special parties, the average number of persons served during the evening
dinner hour has dropped from approximately 85 in June to approximately
60 in July. The number of persons served for luncheon and in the Mixed
Grill has dropped only slightly. The sales in the Mixed Grill, Stag Bar,
and patio depend primarily on the number of persons playing golf and using
the swimming pool. Cooler weather and rain during July have caused a

considerable decrease in the pool attendance.

57

The success of the club in the future will depend to a large extent
upon the club's ability to maintain a favorable dues structure. The club's
mortgage of about $250,000.00 is four times the mortgage on the former club-
house. The utilities, taxes, and labor costs are substantially greater.

As the new clubhouse Operation continues, maintenance costs will increase.
To Offset these additional costs, additional net income from the increased
sales should be realized. That the additional net income and costs will
offset one another is doubtful.

The additional facilities of the new clubhouse will probably cause
requests for additional services from some of the members. The decision
to grant these additional services must be made by the Board of Governors.

The one factor which could have the greatest influence on the dues
structure or the ability of the club to afford many of the services now
offered to the membership is federal legislation.

Many club memberships are paid by businesses and associations. The
costs of some memberships are reported as tax deductions. The federal
government now requires evidence that the club membership is used to further
a company or individual's business. Likewise, expense deductions are re-
ceiving more attention by the government, and this will affect the club
in two ways. First, some of the entertaining which members are now doing
at the club will stop, causing a loss of revenue to the club. secondly,
the administrative expenses Of the club may increase in order to provide
the members with sufficient records to satisfy government auditors.

The federal government now prohibits clubs from catering to outside
parties. All parties held at the club and financed by a company or in-

dividuals not members of the club are considered outside parties. For

58

example, a Kiwanis Club banquet or a wedding reception for a non-member,
even though sponsored by a member, are not legal club functions. Any club
discovered catering to these outside parties may lose its tax-exempt
status as a non-profit organization. If a private club in Michigan were
to lose its tax-exempt status and be required to file as a regular corpor-
ation, its Club Liquor License would be withdrawn, and a Class C Liquor
license would be issued requiring the club to serve anyone, regardless

of membership, in its bar. In 1958 the commissioner of Internal Revenue
published Revenue Ruling 58 - 589, 1958 - 2 Cum, Bull. 266, which reads in
part as follows:

"Therefore, to qualify for income tax exemption, a social club should
not advertise its facilities for non-member patronage since it would be prima
facie evidence it was engaging in business. Likewise a social club should
not engage in any type of business activity for profit which is designed
to increase or which could result in an increase in net earnings inuring
to the benefit of any shareholder or individual. Net earnings may inure
to members in such forms as an increase in services offered by the club
without a corresponding increase in dues or other fees paid for club sup-
port or as an increase in the club's assets which would be distributable to
members upon the dissolution of the club."

"However, this is not to say that a club will necessarily lose its
exemption if it derives income from transactions with other than bona fide
members and their guests. A club will not be denied exemption merely because
it received income from the general public, that is, persons other than

members and their bona fide guests, or because the general public on occasion

59

is permitted to participate in its affairs, provided such participation is
incidental to and in furtherance of its general club purposes and it

may not be said that income therefrom is inuring to members. This is gen-
erally true where the receipts from non-members are no more than enough to
pay their share of the expense......where, however, a club makes its facil-
ities Open to the general public and the purpose is to increase its funds
for enlarging its club facilities or Otherwise benefiting its members, it
is evident that it is not operating as an exempt social club within the
intendment of Section 501 (c) (7) of the code."

Other federal legislation, now pending, concerns a reduction of the
excise tax which the club pays to the federal government. The present 20%
excise tax on dues and membership fees was levied during WOrld'war II as a
temporary tax. The tax was 10% before this time. Renewal Of the 20% tax is
now necessary. Through the national office Of the Club Managers' Associa-
tion of America, considerable effort is being made to encourage legislators
to allow the 20% temporary tax to expire.

Because of the several factors mentioned here, it is not possible to
determine what the members of walnut Hills will be experiencing in the
years ahead. In the Opinion of the author, who has been the club's manager
for the past four and one-half years, dues within the next five years will
increase by $5.00 to $10.00 per month per Regular member. Assessments can
and should be avoided. Considerations which the author believes will cause
this increase in dues are listed below:

1. Net income will not equal increased costs of mortgage,

taxes, and operational expenses.

2.

60

Some increased services will be provided.

The government will not lower the 20% excise tax during this
period. '
wages will increase slightly.

The requests for eliminating the pool fee may be granted,
however, this could be Offset by increasing another service
fee such as the locker fee.

Income from membership fees will be reduced because of

the membership quota being filled.

As shown in Figure 3, the present dues structure of the blub is equal

to or less than most comparable private clubs in Michigan. After the new

clubhouse was Opened, dues were raised to $30.00 per month for Regular

members. The manager did not receive one complaint. Many members stated

that they expected a larger increase. An increase to $35.00 per month

per member, which may be necessary in the next two or three years, may

cause a few members to resign. These resignations should be easily re-

placed. For the present, the club is financially sound, and the outlook

for the immediate future is favorable. The success in the future depends

upon member participation, sound management practices, the condition of

the economy,

effects of government legislation, and future board action.

FIGURE 3

MICHIGAN GOLF AND COUNTRY CLUBS
ANNUAL DUES AND ASSESSMENTS
1959 and 1960

Annual Dues Assessments

121219.69 125212.60
Arbor Hills Country Club $170 $224 .0— -0-
Battle Creek Country Club 200 200 $110 $110
*Birmingham Country Club 455 420 -O- 250
Bloomfield Hills Country Club 480 480 -0- -O—
*Blythefield Country Club 260 260 -0- 200
Dearborn Country Club 360 444 -O- -0-
Flint Golf Club 230 249 12 72
Gull Lake Country Club 240 240 60 60
Country Club of Jackson 275 275 -0— -O-
Kalamazoo Country Club 302 302 120 120
Country Club of Lansing 324 324 100 100
Lenawee Country Club 210 210 -O- -O-
Orchard Lake Country Club 468 473 -0- -O-
*Plum Hollow Country Club 450 576 60 975
Point-Of-WOOds Country Club 1000 1000 -O- 175
Saginaw Country Club 275 275 -0- -0-
walnut Hills Country Club 268 268 -O- -0-
*washtenau Country Club 295 295 -0- 1200
western Golf and Country Club 450 450 125 -0-

* Denotes clubs which engaged in building or refurbishing projects in 1960.

SUGGESTED READINGS

Cliffer, Harold J, £lappipg_ppa_Golf Clpbpopa . National Golf Foundation,
Chicago, 1956.

Fawcett, H. J. The Managemenp p§_Clubs. Vantage Press, Inc., New York,
1958.

 

Brodner, Joseph, Howard Carlson, and Henry Maschal. Profitable Food,apg
Beverage Qparation. Ahrens Publishing Company, New York, Third
revised edition, 1959,

Grossman, Harold J. Pracpical Bar Managepept. Ahrens Publishing Company,
New York, 1959.

Kiester, Douglas C. How pp_Increase Prpfips High Portion Copprol. Ahrens
Publishing Company, New York, 1957.

Slowinski, walter J. 235,011Qi . Page 10 of Verbatiop Transcript,pf
Major Addresses given before the 35th Annual Conference, Club

Managers' Association of America, March 1-3, 1962.

Dietz, Susan.M, Tao Correcp waitress. Ahrens Publishing Company, New York,
Sixth Printing, June, 1961,

Hathaway, Charles F;e,glpijanagemenp, 12§Q—. AfithesiS‘written for the
School Of Hotel, Restaurant, and Institutional Management, Michigan
State University, East Lansing, 1959,