Membership Committee Report May 27, 2009 Brian D. Sieve

Agenda Overview of current membership data Explanation of new social program and proposed by-law change

Current Membership Data

Current Offerings Regular: –$45,000 initiation –payable over 3 years: $20,000/$15,000/$10,000 Non-equity: –$28,000 –payable over 2 years: $18,000/$10,000 Young Executive –$7,500 plus $2,000 per year –50% dues/assessments

Committee Continuing to Explore Creative Ideas Evaluating several potential changes: –reduced initiation fees –program to “spend down” amounts owed for return of initiation Welcome input from membership

Proposed By-Law Change For Social Membership

Why The Proposed Change? Social program is dying fast Membership Committee believes we need bold changes

Problems With Current Program: High Cost Too expensive Currently charge $70 per month, or $840 per year –for the right to dine at the Club Many members pay $840 and spend $1,000 or less Too many other dining options in Naperville

Problems With Current Program: Not Enough Benefits Benefits not attractive –dining only –no pool, tennis, paddle tennis, etc. Almost all clubs in CDGA offer limited golf to socials –we are an outlier Membership not perceived as good “value”

Solution: New Social Program Effective June 1, offer entirely new social program Two parts to new program: –Reduced fees –Increased benefits

New Program: Reduced Fees Reduced fees –$400 yearly charge –payable June 1 No monthly charge, service fees or minimums Current members save $440 per year Reduced fees should attract new members

New Program: Golf Privileges Add limited golf privileges Provide “value” for membership fee Expose socials to our key asset (course) –excite/entice them to become regular members Increase revenues –make up for reduced yearly fee with greens fees, cart fees, incremental dining

Restrictions on Golf Privileges Program currently approved for one year only Four rounds per social per year –Tuesday-Thursday only –must pay guest fees (for member and guests)

Restrictions (cont’d) Restricted to existing and new social members Board has right to restrict existing regular members from converting –anticipate 12 or 18 month waiting period for existing regulars to convert to social

Initial Feedback To New Program: Positive May 12, 2009 focus group with socials –excited about prospects of limited golf Discussions with former social members –several indicated a willingness to come back

Membership, Golf and Board Recommend By-Law Change Vibrant social program is critical to long- term health of Club CDGA: social program is best source for new regular members –anecdotal data from Cress Creek confirms More social members help reduce year-end assessment for all members