MARRAKESH COUNTRY CLUB STRATEGIC PLAN 2020-2027

Dear Marrakesh Country Club Board Members, This Marrakesh Country Club Strategic Plan 2020-2027 is an effort to capture the essential assets of Marrakesh and the current state of those assets. It is based on the prior work represented in the McMahon Study introduced in 2016 and the subsequent work of the Strategic Planning group under the leadership of the late George Haymaker in 2017 and 2018. It is informed by a series of member surveys, including the initial McMahon effort, a 2018 New Member survey, and the survey feedback that has come thru the clubhouse renovation process. The Plan is based, as well, on the belief that the essential assets of Marrakesh are not only the basis of a successful Marrakesh history but are key to its future. While the Marrakesh Community Association (aka, MCA) and the Marrakesh Country Club (aka, MCC) are separable legal entities, operating under different sets of California law, the recognition that we are essentially “one thing” is reflected in the organization of the plan. It would misrepresent the character of Marrakesh to have separate strategic plans for the MCA and MCC. The Strategic Plan was developed primarily for use of the Board. It is intended to provide a comprehensive statement of the “story” of Marrakesh and provide to the Board a view of the assets that the Board is responsible for nurturing. It provides an outline of decision areas that current and future Boards will face and the policy issues associated. It represents what we believe to be a basic consensus regarding the strengths of Marrakesh and where we face challenges in protecting and enhancing these strengths. It is written with the future in mind, based upon what we know of our changing membership and the expectations of that membership. In order to ensure that this planning document remains useful over the next several years we would ask the Board to charge the Presidents’ Council (made up of all past MCC Presidents who have maintained membership and chaired by the current President) with responsibility to annually review the Strategic Plan and its application. The Presidents’ Council would provide a report and any recommendations to the Board. This will ensure a continuity of leadership in regards to major multi-year objectives that is difficult to achieve in the context of annual changes in Board makeup and Officers. All of you have been critically involved in this Plan. It draws upon much Board discussion regarding these issues, including Board retreats in recent years that have addressed strategic matters, and numerous Board and Committee decisions which reflect strategic judgment. Special thanks to Eula Robertson, Wally Grimm, Mark Goldman, and John Sotomonte for their efforts to put this document into its present form.

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None of the 12 “Key Strategic Issues” noted in Section F of the report will be new to you. Indeed, all of these issues are being addressed by the Board, Committees, and management in one way or another. You will note a “status” section following each of these issues that describes the current state of dealing with the key issues. Some are more clearly urgent than others, and involve more complexities than others, but it is the task of the Board to establish priorities and a systematic plan for continued progress. Mark Goldman and the management team will be responsible for developing detailed “action plans” outlining “who does what to whom, over what period of time, at what cost, and to what effect” in the priority areas. We would like you to think of this document as a statement of what Marrakesh is, has been, and what it intends to be in the future. As such it represents not only an agreement among Board and Management that these are the necessary areas of attention but is as well a statement to our members as to what they can expect of us over the next several years. Regards,

Nelson Reid, Former President, MCA|MCC Board of Directors (2018-2019)

Byron Francis, President MCA|MCC Board of Directors - 2019-2021

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Table of Contents A.

STATEMENT OF PURPOSE ........................................................................................................ 6

B.

ASSETS OF MARRAKESH THAT MUST BE PROTECTED ............................................................. 8 1.

A Distinctive Architectural And Design Heritage. ................................................... 8

2.

A Scale To Our Social Life That Fits The Proportions Of The Community. ............... 8

3.

A Clubhouse, Initially Designed By Woolf But Finished By Harrison, Dramatically Placed Directly At The Entrance. .............................................................................. 8

4.

The Solidarity of our Membership. ............................................................................ 8

5.

A Landscape Character And A Level Of Maintenance That Is Perfectly Suited To Our Distinctive Style. .................................................................................................. 9

6.

A Golf Course That Has Been Described As The Best Short Course In California With A Level Of Maintenance That Is Often Described As “Little Augusta”. ......... 9

7.

The Tradition Of Excellence In Clubhouse Services................................................ 9

8.

The MCA Purchase Of The Ground Lease Of Marrakesh Property Held By The Stewart Trust In 2015. ................................................................................................. 9

9.

The Unified Structure Of Governance Joining The Marrakesh Community Association And The Marrakesh Country Club. ...................................................... 9

10.

The “Single Membership” Policy, Adopted By The Membership In 2015 .............. 9

11.

Marrakesh Is Among The Best Priced Classic Clubs Of The Valley. ...................... 9

12.

Marrakesh Is Financially Sound .............................................................................. 10

C. WHAT DO MEMBERS WANT .................................................................................................. 11 D.

E.

FACTORS THAT INFLUENCE OUR FUTURE ............................................................................. 12 1.

Demography and Changing Patterns of Residence and Club Utilization ............ 12

2.

Golf “Decline” ........................................................................................................... 12

3.

Residential Demand ................................................................................................. 12

4.

The Problem of Water ............................................................................................... 13

5.

A Changing Energy Context.................................................................................... 14

MISSION AND GOALS NOW IN PLACE ................................................................................ 15 MCC/MCA Mission Statement ........................................................................................ 15 Statement of Principle ...................................................................................................... 15 Governance Goal ............................................................................................................ 16 Financial Goal .................................................................................................................. 16 Membership Goal ............................................................................................................ 16 Communications Goal .................................................................................................... 16 Social and Dining Goal.................................................................................................... 16 Facilities Goal ................................................................................................................... 17 Security Goal .................................................................................................................... 17 Management and Employee Goal ................................................................................ 17

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F.

ENSURE THE FUTURE OF MARRAKESH: KEY STRATEGIC ISSUES ............................................ 18 1.

Update Clubhouse To Reflect Character And Quality Of Marrakesh (Critical To Marrakesh Future) ................................................................................................... 18

2.

Aging, Dysfunctional, And Out Of Date Elements Of MCA Residential Infrastructure Must Be Replaced ............................................................................ 19

3.

Architectural Heritage Of Marrakesh Must Be Promoted And Protected. .......... 20

4.

Establish Multi Year Financial Model That Will Ensure Basic Adequacy Of Operational Revenues And Reserves For Both MCC And MCA. ......................... 21

5.

Restate Importance Of Golf And The Golf Course................................................ 22

6.

Prioritize Residential Full Membership. ................................................................... 24

7.

Ensure Marrakesh “Friends And Family” Membership Continues. ...................... 25

8.

Security And Emergency Planning Must Be Improved......................................... 25

9.

Update And Upgrade Communications And Associated Technology In MCA And MCC. ................................................................................................................ 26

10.

Ensure MCC/MCA Governing Documents Are Up To Date, Internally Consistent, Compatible With One Another, Consistent With Applicable California Law, And Expressive Of The Interests Of Members. ............................................................... 26

11.

Restate Commitment To The Landscape Character Of Marrakesh As “Lush And Efficient” With Continued Emphasis On The Highest Level Of Maintenance And Traditional Degree Of Resident Member Preferences In The Areas Immediately Around Homes. ........................................................................................................ 27

12.

Ensure Governance Structure And Process That Is Responsive To Evolving Needs, Promotes Harmony And Consensus Among Members, Communicates Clearly And Effectively And Provides Continuity Of Governance And Club Goals Thru Board Cycles......................................................................................... 27

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MARRAKESH COUNTRY CLUB STRATEGIC PLAN 2020-2027 A. STATEMENT OF PURPOSE Marrakesh Country Club has 50 plus years of good life: A life of style, distinctive design in houses, club, and landscape, an evident commitment to quality, and a recreational and social life of envy to all others. Marrakesh is one of the genuinely Classic clubs of the Coachella Valley. It is a uniquely boutique club conceived by John Dawson, developer of Eldorado and Thunderbird, with residential design by John Elgin Woolf and golf course by Ted Robinson. Its legacy of relationship to the other Classic clubs in the valley is very evident. Marrakesh has a fine location in Southern Palm Desert, a perfect proportion of land to residences, Club, and golf course, with an integrity and harmony without parallel in any other club community in the valley. Views are stunning. It is in a class by itself. Our strategic objective is to keep it this way. It is apparent that the qualities of Marrakesh are as attractive to current and new members as they have ever been. The regeneration that is all around us, driven by the strong demand for Marrakesh life in recent years, is evidence of that. But none of these qualities is selfsustaining. It will take a clear understanding of the assets that have been the basis for the success of Marrakesh and its continuing appeal. It will take a clear and commonly shared future vision, a commitment to creating an effective consensus about that vision, and a belief that Marrakesh, in architecture, in landscape, in membership, and in social life, is every bit as suited to 2020 as it was to 1967. The purpose of this Strategic Statement is to assess the current state of Marrakesh and its important elements. To identify clearly what needs to be done to both retain and enhance our base assets and to create a set of priorities, a time frame, and a financial plan that will sustain the Marrakesh we have all come to love. Strategic planning is a matter of establishing goals for an organization that express our intentions over the next several years. It requires an assessment of where we stand now in areas that are important to us relative to our mission objectives and goals. It requires an understanding of the assets we have on the ground now, having a realistic evaluation of those assets, and an ability to define required changes necessary to realize the identified goals.

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CORE VALUES OF MARRAKESH Style And Design Rich Architectural Heritage Unity Of Membership Social, Friendly, Welcoming, Inclusive Excellence In Services Value For Membership Centrality Of Golf Integrity Of Leadership Sound Fiscal Management Continuous Improvement

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B. ASSETS OF MARRAKESH THAT MUST BE PROTECTED Marrakesh is blessed with an ideal location in the Valley. Good town, great neighborhood, and excellent microclimate. In addition, we are fortunate to have a scale of community both in our physical facilities and in our membership that allows manageability, fellowship, and broad commitment to one another and staff. Marrakesh is a classic, boutique club: Widely recognized as the best of its type in the Valley. The success of Marrakesh is based upon essential assets, including: 1. A distinctive architectural and design heritage. Our architecture is our unique strength. It is absolutely authentic and original: The only Hollywood Regency style community of any scale in the country and designed by the master of that style, John Elgin Woolf. An asset, immeasurable in importance, that is key to our past and future. Add to this a proportion and scale to the Community and the Club that is perfectly suited to the Woolf residences and creates an atmosphere of spaciousness and graciousness throughout. The continuity of color, residential proportions, and architecture creates a harmony and glamour simply unknown anywhere else. Combined with such amenities as ample common ground, numerous pools with Woolf designed pool houses, great golf course, and roads that follow the terrain. Again, it is simply in a class by itself. 2. A scale to our social life that fits the proportions of the community. With 364 homes and approximately 600 active residential and non- residential members we are able to know, socialize, and recreate with one another in a way that is rare among Club Communities. 3. A Clubhouse, initially designed by John Elgin Woolf but finished by Richard Harrison, dramatically placed directly at the entrance. As one comes through the gate and looks up the clubhouse in character, color, and in its modest size and elegance is perfectly expressive of both Marrakesh style and the centrality of our social life. Aging a bit, and in need of refurbishment and some enhancements, the refurbishment of the Clubhouse is planned. It is an asset of immense importance. 4. The Solidarity of our Membership The history of Marrakesh is one of families and friends who have chosen Marrakesh over the years and have often maintained membership over the generations. Marrakesh has a distinctive aesthetic that has had strong appeal to its past members and continues to appeal to newer members. Everyone coming to Marrakesh feels this aesthetic and has a sense of joining something rather important and worth preserving. This is a grand basis for our commonality and shared commitments. It is reflected every day in the care and concern of members for one another, for our staff, and for our built environment. This commonality of purpose has been enhanced in recent years by embracing a “single membership” policy which provides that all members have equal access to all club resources, services, and activities. All members also have equal responsibility for supporting the club and community. However, the single membership structure will take some years to fully mature.

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5. A Landscape Character And A Level Of Maintenance That Is Perfectly Suited To Our Distinctive Style. “Lush and efficient”, and seasonally colorful, the park like spaciousness and scale of Marrakesh incorporates both grace and continuity and is reflective of the aesthetics of individual residents. 6. A Golf Course That Has Been Described As The Best Short Course In California With A Level Of Maintenance That Is Often Described As “Little Augusta”. An enormous asset for Marrakesh that is now regarded as the “future of golf”. Thanks in good part to the beauty and character of the course, its second to none maintenance, and capable golf operations Marrakesh has not experienced the “golf decline” so typical of other clubs. Noted also should be the allied recreational facilities including fitness room, tennis and pickle ball, and areas for walking. 7. The Tradition Of Excellence In Clubhouse Services. From dining and the frequent member social events to the very convivial and easygoing golf operations Marrakesh has established a reputation it dare not lose. A reputation for being both relaxed and stylish at the same time. Excellence is not possible without close attention to recruitment and selection of staff, ongoing training, clarity of expectations, and member support of staff. 8. The MCA Purchase Of The Ground Lease Of Marrakesh Property Held By The Stewart Trust In 2015. This purchase eliminated the risk associated with the termination or renegotiation of the lease end in 2042 and has allowed the MCA to grant to individual residential members fee simple ownership of the residential lots. 9. The Unified Structure Of Governance Joining The Marrakesh Community Association And The Marrakesh Country Club. While each are separable legal entities, the effective partnership between the two entities has allowed the avoidance of the sort of negative relationships that have developed in many “golf course communities” between HOA and Golf Club interests. Marrakesh is not a housing development that happens to have a clubhouse and golf course; it is effectively “one thing” and must be kept that way. 10. The “Single Membership” Policy, Adopted By The Membership In 2015 This policy, stipulating that residential members joining in Oct 2016 and after would be “full members” able to use all the facilities of the club on an equal basis. This has not only strengthened the financial future of the Club it has expressed an important aspect of Marrakesh culture: We are all members and we “live in the club”. The harmony of our houses in color and proportion is reflected in the harmony of single membership. 11. Marrakesh Is Among The Best Priced Classic Clubs Of The Valley. In housing purchase, in club affiliation fee, in HOA/Club dues and related costs, Marrakesh provides extraordinary value. Marrakesh looks and operates at a high level, comparable to the other classic clubs of the valley, but its costs are far less.

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12. Marrakesh Is Financially Sound Having a far better business model than many club communities with a strong, predictable revenue stream, Marrakesh is financially sound. The adequacy of that revenue stream through dues, HOA fees, reserve support, affiliation fees, and operational revenues requires constant vigil. These assets have been noted by members repeatedly in various surveys. In 2017 the “State of The Club” summary in the McMahon report concluded “the state of Marrakesh Country Club is fantastic!”. The report goes on to cite very high member satisfaction, high levels of club utilization, stability of staff, and financial strength. These assets then, taken together have meant Marrakesh is, and has been, a great success. There is no doubt, as recent member surveys indicate, that the same assets that have attracted people to Marrakesh in the past are attracting them now. There is every good reason to believe the same assets that have worked for us up until now will continue to serve us well, perhaps even more strongly, in the future. Our task in Strategic Planning is to ensure that we have the intentions, resources and means to protect and enhance our core assets. None of these assets are expendable. None are self-maintaining. ESSENTIAL STRENGTHS OF MARRAKESH 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Residential Character and Architectural Heritage Proportion and aesthetics of landscape. Ownership of land Character and unity of membership Best “executive course” in California Dramatic and architecturally important clubhouse Strong social life and high utilization of club facilities Quality of Member Club Services Unified governance structure Fiscal Soundness

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C. WHAT DO MEMBERS WANT Based on member survey results over the past few years, beginning with the McMahon survey of 2015 it is clear the membership is overwhelming pleased with Marrakesh in character, in operations, in governance, and in value. The Marrakesh they have joined is the Marrakesh they wish to sustain. However, there is a recognition of aging infrastructure, an outdated clubhouse, and a necessity to systematically address these matters. More specifically, members want to:

• • • • • • • • • • • • • • • •

Maintain Our Architectural Heritage Update Clubhouse with Design and Style Expressive of Marrakesh. Have a Good Bar, Informal Dining, and More Outside Space Member Service Oriented Clubhouse with Extended Days and Hours Have the Value of Membership Protected Maintain Friends and Family Character of Marrakesh Maintain a Caring and Friendly Community of Membership Continue High Level Satisfaction with Club Services and Staff Continue the Perception and Reality of Marrakesh as Great Value Continuous High-Level Maintenance of Residences and Landscapes Effective, Visible but not Intrusive Security Have Continued High Degree of Member Consensus on Club and Community Basic Elements Have Board and Committees that Function Transparently, Inclusively, and Responsively to Membership Have Clear and Timely Communications from Board and Management Maintain Quality of Management and Staff in Every Department First Rate Member Experience on “Little Augusta”, and with Pools, Tennis and other Recreational Amenities

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D. FACTORS THAT INFLUENCE OUR FUTURE 1. Demography and Changing Patterns of Residence and Club Utilization Since October of 2016 and the implementation of the single Full Membership policy there have been approximately 100 new residential members. This recent surge of new members clearly indicates the continuing appeal of the idea of Marrakesh to younger generations. The level of investment on the residential side that these new members have brought is remarkable testimony to their faith in the Marrakesh future. Marrakesh has always appealed to people in their 50’s who have the time and money required to live part of the year in the desert. What seems to be changing, however, is that the season of the desert is getting longer, and more are choosing to have Marrakesh as a primary residence or to utilize the residence as a second home on a year-long basis. This has obvious implications for Club services and activities. As Marrakesh gets younger as a result of the next demographic wave, it is also the case that those who have been in Marrakesh for a number of years will live longer more active lives than their predecessors. It is reasonable to expect that Marrakesh will have a growing cohort of members over 85 years old or more. This too has implications for our operations. 2. Golf “Decline” The era of the Golf Course Club Community (arguably invented here in the Palm Springs area) is over. Started in the late 50s and early 60s and picking up speed in the 70’s and 80’s the trend was driven by post WW2 “baby boomers” with the desire to live a resort-like life with recreational and social amenities at hand. Golf boomed as tennis had earlier (when baby boomers were younger). But today golf courses are closing and Clubs with operationally costly, perhaps multiple, courses find themselves struggling. But Marrakesh is not struggling. It is a golf-centric residential club community but the character and quality of our course, the favorable cost aspects of the shorter design, and its appeal to older or more casual golfers has proven an enduring asset. And, of course, it is beautiful in design and maintenance and is physically central to everything we do. 3. Residential Demand Resort area home sales nationally took a dramatic turn upward in the late 90’s and early 2000’s. Fueled, in part, by ease of financing a significant proportion of new second home buyers were over-leveraged playing a role in the financial disorder and recession that followed 2007-2012. Marrakesh, however, did remarkably well during this period of decline. Residential prices did fall substantially but essential stability was maintained. This was most likely due to two apparent factors: 1. Marrakesh owners then, as now, are not short term owners but are likely to hold ownership much longer than typical resort area owners; and 2. the effect of the land lease was to limit mortgage availability, thus most Marrakesh sales were for cash and not then as sensitive to the mortgage excesses of the time. Residential membership turnover during this period was restrained by these factors and the recovery of Marrakesh from the recession is evident, most especially 2014 to the present.

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Trends in second home ownership in the upper level resort areas suggest that more buyers chose second homes that are attractive to their extended families and are likely to be primary homes after retirement. Higher end resort areas do best within a 3- hour drive from major metro areas and many see a second home as a place to work in the new world of communication technology that makes location less relevant. Marrakesh is in a nearly ideal location to take advantage of current trends. People with means are being afforded an opportunity to realize their home equity, taking advantage of historically low interest rates, and find a less costly, safer, less dense, and more manageable living than that available in large metro areas. The effect of the COvid-19 pandemic, beginning early 2020, is difficult to fully assess at this writing (June 2020), however, a likely effect is the attraction to the Coachella Valley of a younger, still work active demographic. Our proximity to San Diego and Los Angeles and a substantial Southern California population will increase as an important asset. Marrakesh will see, in all likelihood, a wave of younger new members, in the 40s and 50s rather than the historically more typical 50s and 60s. If this occurs the impact on member utilization, and expectations, both for Club and Community will be profound. Economic cycles do occur, and we cannot ensure that the current strength of demand for residential membership will continue unabated. However, Marrakesh did quite well overall in the 2006 -2011 downturn and the vagaries of first and second home real estate should be manageable presuming sound financial management and protection the core assets of Marrakesh. 4. The Problem of Water Water in Southern California has long been in short supply. It is the key strategic resource for the region and is essential for both urban and agricultural development. Its distribution and use are controlled through a complex governmental process and a policy of planned restriction and water use allotments. During the last series of droughts reductions in both agricultural and recreational uses of water have been instituted by the California legislature as well as regional providers such as CVWD. This policy structure, relying on planned allocations as opposed to pricing, is designed to assure that a simple willingness, or ability to pay, will not divert the limited water supply away from basic necessity. We can expect this pattern of policy to continue and, in all likelihood, to get more restrictive in recreational activity such as golf. Nevertheless, our advantage in water utilization relative to full length courses is a great benefit. The Club’s best approach to this is to seek efficiency of water utilization through proper equipment for pumping and distributing water, practices (such as time of day watering) that promote efficiency, reducing high water use grassed areas in the residential landscape, and using low water consumption plantings throughout. In addition, understanding CVWD policy and incentive structure for efficiency is essential.

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5. A Changing Energy Context California electricity costs are the highest in the nation, nearly double the average national rate, and have been going up steadily over last decade. The principle driver of electricity costs has been the high voltage lines that have been added over the years needed to combat rolling blackouts, extensive fires caused by inferior power lines, combined with the progressive retirement of coal, hydroelectric and nuclear plants. This has allowed the transition to non-renewable resources, solar and wind primarily. The most important change in California electricity rates in recent years has been the shift from charging low users very low rates while charging high users very high rates, to charging a more uniform rate to everyone. However, while solar energy has reduced the cost of electricity during the day (when the sun shines) generating power in other times of the day has gotten more expensive. As a result, utilities are now offering time of use rates. These rates are low late at night and while the sun shines, but high in the late afternoon and early evening. The Club is a commercial electric customer and pays for electricity based on peak usage as well as the energy used per month. Solar panels have become an attractive option for many residents but solar is not as cost effective for the commercial customer because of lesser tax incentives. The best option for the Club is to optimize the time utilization of energy to avoid highest rate periods and to consider energy storage as battery storage becomes cost effective. California law seeks to reduce greenhouse gases. As a result, a number of cities have begun to phase out natural gas utilization which is still quite common in water and space heating. While the phase out is likely a 20 year process the declining utilization will likely lead to higher prices in order to cover costs of gas company necessarily continuing material assets: Best to transition to electricity in kitchens, pools, and residences as replacements are needed.

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E. MISSION AND GOALS NOW IN PLACE The currently in place Mission Statement, and related set of Goals, was adopted by the Board in May of 2017. It was intended as a restatement of what we have been about and what we intend to be over the foreseeable future. This Strategic Plan is an effort to create an operational extension of the Mission and Goals, allowing an action-based guide for the Board and Management over the next several years. MCC/MCA Mission Statement The Mission of Marrakesh Country Club is to provide a welcoming, inclusive community which: ➢ respects and values all members and employees ➢ provides social, dining, and recreational opportunities which encourage the interaction of its members and guests ➢ preserves and upholds its unique architectural, landscape and cultural heritage ➢ follows sound and transparent principles of finance and governance, maintaining high ethical standards Statement of Principle The members of Marrakesh Country Club are bound in a remarkable tradition of highly distinctive style, in both architecture and landscape, and a strong commitment to one another, to the club, to the community and to our staff. We have a history of inclusiveness and diversity in age, origin, and background remarkable for a private club. This tradition is the result of a happy confluence of circumstances and history that have given us a much desired location in Coachella Valley, a manageable scale to our residential and recreational space, a structure of governance and finance combining Club and community, and, perhaps, most of all, a membership that has shared the aesthetic and social values of Marrakesh over the generations. The distinctive design heritage of Marrakesh, the commonality of our shared responsibility for this heritage, and the very evident culture of caring that has drawn so many here to stay is the central and compelling focus of our mission. Specifically, Marrakesh Country Club will welcome and care for its members, their families and guests, and our employees, all of whom treat one another with respect. We will embrace and maintain our unique architectural heritage that combines modest proportion with timeless elegance. We will provide facilities, both social and recreational, that our members enjoy and take pleasure in inviting family and guests. And, we will continue to offer an array of activities, from bridge to yoga, that is responsive to current and future desires. We will do this while following sound and transparent financial and governance processes, maintaining the highest ethical standards. Our Mission is supported by Club Goals and action plans in each of the following areas: ➢ ➢ ➢ ➢

Governance Finance Membership Communications

➢ ➢ ➢ ➢

Social and Dining Facilities Security Management and Employees

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Governance Goal The Club will be governed by a Board representative of the membership and dedicated solely to the interests of the members. The Board will seek out and implement best practices in governance, and adhere to principles of: ➢ Clear and transparent communication about the state of the club and significant issues and decisions ➢ Adherence to the laws of California and Davis Stirling, which guide directors of club communities, and to Marrakesh CC&R’s and By-Laws. ➢ Honest and ethical behavior in fulfilling its duties ➢ The Board will involve a significant cross section of the Club membership in Committees of the Board responsible for key areas of Club activity and facilities Financial Goal The Club will be operated in a sound and transparent financial manner, with: ➢ annual operating budgets and dues structures that assure maintenance of adequate reserves while providing services at a satisfactory level ➢ a long-term financial plan that supports major maintenance of facilities, as well as long-term capital projects and improvements as contemplated in the Strategic Plan ➢ clear, understandable, and timely communications about the financial condition of the Club. Membership Goal The club will endeavor to attract and select new members, both residential and nonresidential who: ➢ share the values and traditions that bind Marrakesh members together ➢ whose addition will maintain a vibrant, financially healthy community Communications Goal The Board of Directors will communicate effectively and frequently to the members about: ➢ the financial condition of the club ➢ approved plans, budgets and fees ➢ important matters of club policy and governance ➢ the future direction of the Club as set out in the Strategic Plan. Management will communicate effectively to all members about: ➢ club activities, to assure all are aware of opportunities for participation and member interaction ➢ matters of club operation ➢ security procedures and policy The Board and Management will use multiple means of communication (e.g. open Board meetings, town halls, area meetings, e-mails and postal mailings) to assure the membership is well informed. Social and Dining Goal The Club will provide:

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➢ the high quality of food and service for which Marrakesh is well known, comparable to the other first level Clubs in the Valley ➢ organized formal, informal, and casual dining and social events, which encourage social interaction Facilities Goal The club will provide facilities that maintain its tradition of highly distinctive style of architecture and landscape, while meeting the needs of members, and their families and guests, for participation in activities that they enjoy. ➢ The Clubhouse and related facilities will provide adequate and attractive spaces for formal dining, informal meals and social interaction, exercise and fitness, and games of high interest to members. ➢ The Marrakesh golf course is unique among desert courses in its combination of challenging greens and hole design with playable length. The Club will continue its tradition of offering a challenging but enjoyable golf experience for players of all skill levels and ages. The course will be maintained in a condition competitive with the best-maintained courses in the desert. The professional staff will provide opportunities for members and their families to learn the game and improve their skills, participate in golf social events, and participate in competitions appropriate for every skill level, so that golf participation among members is at a satisfactorily high level. Limitations in practice facilities will be addressed. ➢ The residential and common areas will be landscaped and maintained at the level Marrakesh is well known. The ‘lush and efficient” landscape objective, meaning well designed plantings mindful of our desert environment and water limitations, but also consistent with the green and colorful Marrakesh tradition. ➢ Marrakesh will provide facilities and organized opportunities for other forms of outdoor recreation for its members, including such activities as its members significantly support through active participation: examples include tennis, pickle ball, croquet, bocce ball, aqua aerobics, and swimming. Security Goal The Club will provide a safe and secure environment for Club resident and non-resident members, their families, and their guests. Management and Employee Goal The Club management will seek out and use “best in class” club management personnel supported by processes, procedures, and training to operate efficiently within the budgetary and capital expense framework established by the Board. Management will effectively execute policy as established by the Board and consistent with the Bylaws and CC&R’s of Marrakesh CC. The Board and Management accept as a high priority the maintenance of the special relationship that exists between Marrakesh members and the employees.

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F. ENSURE THE FUTURE OF MARRAKESH: KEY STRATEGIC ISSUES 1. Update Clubhouse to Reflect Character And Quality Of Marrakesh (Critical To Marrakesh Future)

NEED: The MCC Clubhouse is an imposing and inspiring presence immediately upon entering the gate. It immediately represents the spirit and style of Marrakesh in form, color, and elegance. The necessity of a redo and upgrade is identified in all member surveys as a top priority. After some 50 years of service, with add-ons and upgrades here and there, it is past time for a thorough refurbishment. Members want a genuine member service clubhouse with expanded informal dining, effective use of outside service areas to take advantage of the best view in the Valley, and a genuine bar area. They want areas to relax, talk, have a drink after golf, after tennis, or other club activities. They want an open clubhouse, more hours, more days, and more of the year. Members want a décor and furnishings that reflect the relaxed elegance of Marrakesh tradition and style. And, of course, they want updated HVAC, electronics, sound, improved kitchen, and much improved areas for staff. A clubhouse that will reflect the emerging trends in club utilization and be in tune with the next generation of Marrakesh members. Pools and pool houses (while incorporated into the MCA common areas and budget) must be considered as important amenities and extensions of the Club. Updating the pool areas is important by improving efficiency in heating, progressively salinating all pools, updating changing rooms, providing Wi-Fi, completing the Woolf windows and attending to aging details . Other recreational amenities, of increasing importance to newer members, such as tennis and pickle ball, bocce, and Croquet must be maintained to reflect Marrakesh standards. STATUS: Since 2016, the Board has recognized the necessity to update and remodel the iconic Marrakesh Clubhouse. It was identified as the highest priority for action in the 2016-17 McMahon study of member satisfaction and all subsequent surveys of member opinion have reinforced that finding. The effort began in earnest in 2017 when former President Eula Robertson appointed the late George Haymaker to head up the Strategic Planning process and asked Tom Lockett to organize the facilities subgroup. That led to George and Tom developing a conceptual plan for clubhouse renewal based on the specific needs of members as evidenced in surveys. These needs included, of course, an updated interior design for the Clubhouse that would be more reflective of the elegance and chic of Marrakesh but also some structural changes that would facilitate greater member use and satisfaction. This included a “real” bar area and a satisfactory area for informal dining and activities (like after golf gatherings, morning coffee and happy hour), a desire for better and more utilization of outdoor space and taking advantage of the spectacular views south and west. There was a recognition that while the club was not large, we were not utilizing all of the space effectively, most notably the Kasbah room. Members very specifically noted the necessity to provide both larger and more satisfactory facilities for staff and to improve the kitchen. Golfers often noted that missing was the

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“after golf” experience that most clubs provide. The result was a conceptual plan presented in a series of meetings with members in April of 2018 that included remodeling of the interior to accommodate a bar, a south end additional terrace, modest reconfiguration of the entrance, and reworking of the downstairs area of the club both for staff functionality and for member meeting and recreational areas, including the Golf Shop. Of course, there was never consideration of destruction of the iconic clubhouse on the hill that has come to represent the character of Marrakesh and its 50 years of style. The conceptual plan developed by Haymaker and Lockett was met with great approval by the members in a series of small group meetings and the plan, in concept and intention, became the basic model going forward. The summer of 2018 was spent locating and interviewing prospective architects and designers. By late fall of 2018, an architect was selected, a designer team was engaged, and a construction project manager was identified. A broadly representative member group was in place to provide initial feedback to the assembled professional team. In Spring of 2019 a plan was presented to the assembled general membership. The response was quite positive, overall, indicating the great desire of the membership to have a substantial remodel and an effective expression of Marrakesh character. In the subsequent survey of member opinion, the board concluded that the remodel objectives were sound but that the rather extensive reconstruction of the western side of the club was not needed. Discussion continued regarding the extent of modification, necessity for outdoor additional terracing, placement of the bar, use of the Kasbah room. In order to facilitate that discussion with the professional design team, President Francis appointed a small subgroup to provide feedback to the professional team which produced rather quickly an agreement about the structural and space utilization aspects of the plan but revealed that the interior design firm engaged was not the right one for Marrakesh. Subsequently in early 2020 a well-known club interior designer was engaged, and the planning has continued smoothly. Currently, the intention of the Board is to present to the Membership the structural and space utilization plan with preliminary interior renderings by Sept followed by a detailed plan, including financing, in Nov 2020 presented for member approval.

2. Aging, Dysfunctional, And Out Of Date Elements Of MCA Residential Infrastructure Must Be Replaced

NEED: 50 years of inevitable deterioration and small-scale fixes have left us with a large task of systematic renewal of the basic infrastructural features that make Marrakesh beautiful and livable. Including irrigation, lighting (including lampposts), curbs, streets, post boxes. The residential irrigation system, in particular, is years overdue for a thorough reworking. Its nearly daily failures, its evident inefficiencies of coverage and water usage, not to mention unsightly residential streets demand a sense of urgency. We cannot maintain Marrakesh landscape standards without replacement and upgrade.

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STATUS: Current intention is to carry out a comprehensive, external professional evaluation of MCA residential infrastructure including irrigation, lighting, lampposts, and safety issues. Cost estimates, MCA reserve implications, and phased replacement plan is anticipated.

3. Architectural Heritage Of Marrakesh Must Be Promoted And Protected. NEED: Marrakesh has benefited enormously in recent years from the renaissance of MidCentury Modern design and the Palm Springs area annual Modernism Week. The outstanding participation in our annual home tours, either by Le Fleurs or through Modernism Week indicate the increasing interest in Woolf design and the overall aesthetic of Marrakesh. Publications from the New York Times to Palm Springs Life have taken note of both the quality of architecture and life in Marrakesh. More recent resident members indicate our architectural heritage, and our commitment to protecting it, as a major factor in the decision to purchase a home and join the membership. Often that purchase by new members has led to substantial additional investment in remodel and upgrade of homes. The Marrakesh Community Association’s (MCA) Architecture and Landscape Committee (ALC) is charged by the MCA CC&Rs (Sec 8) with “...maintaining the architectural theme created originally by the Developer and architect, John Elgin Woolf”. This requires us to clearly define our architectural heritage and to ensure that new members both understand that tradition and that it is in our collective interest to protect it. The ALC must review and approve any modifications to the exterior of homes. Those modifications must be in compliance with the stated Architectural Rules or Guidelines (ARG’s) which are largely and appropriately expressive of what Dawson, Woolf, Robinson, and Shipley put on the ground. The task on the residential side is, as much as reasonably possible, to preserve the key and iconic elements of design, proportion, color, materials and visible features that make Woolf work recognizable and to maintain the marvelous siting and landscape character that Robinson and Shipley accomplished. This is not an easy task. Those attracted to Marrakesh are quite naturally persons who have aesthetic interests and preferences. They want to have their personal aesthetic preferences reflected in their homes. The work of the ALC inevitably involves managing both the realization of resident aesthetic judgment and the preservation of Marrakesh as we have known it and wish it to be. No Committee of members has a more difficult or trying task than the ALC. Over the years the complications of this task has meant that many have perceived the ALC as neither strong nor consistent. This must change. The ALC is a regulatory body and its work depends upon a comprehensive, clearly stated, and consistently enforced statement of architectural and landscape guidelines. Its integrity and its authority depend on clarity, effective communication with members, efficient process and document management, and fairness in application. In addition to the ALC responsibility the Club must continue to ensure that Marrakesh is presented and recognized as a notable example of Mid-Century modern expression in the greater Palm Springs area.

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STATUS: The Board in 2018 adopted a revised procedure for reviewing major residential project submissions. The revision provided for initial management review under guidance of an external professional architect, or equivalent. That review would focus on the proposal compliance with city and MCA Architectural Rules or Guidelines (ARGs). The findings of that review would be submitted to the ALC along with the proposal. In addition, the Board supported a periodic review of the project during construction to ensure conformity with approved submission and a final sign-off when complete. The Board adopted a fee structure for major proposals sufficient to cover the costs of the initial review and inspections during construction. This revised review process will be fully implemented in 2020. The current ALC has initiated a thorough review and update to the Architectural Rules Or Guidelines (ARGs). This has not been done in over 10 years. While advances in material and technology is desirable and inevitable the basic integrity of Marrakesh must be honored. The Committee is doing this with patience and has committed itself to better communications with all members. When a new resident purchases in Marrakesh, they receive a letter of invitation to meet with a member of the Committee so as to better understand the guidelines and standards that are being set and followed. The intent to ensure that submissions will be compliant with standards and that exceptions will be granted rarely. Protecting the value of each residential member requires protecting the iconic design elements of John Elgin Woolf. It is the goal of the Committee to have these changes operational and any revisions to procedure or documents presented to the Board by the end of August 2020. Starting in July, the monthly member newsletter will include ALC-specific articles to help clarify the process as much as possible. Review of landscaping proposals is another important task of the ALC. The ALC will this year implement a more active review process by having a dedicated component of the ALC membership, working closely with the MCA Director of Residential Landscape, to review landscape proposals for compliance and suitability within the “lush and efficient” standard adopted and the approved plant list. In 2020 the Committee will develop a residential Master Plan and Standards of Service. This will provide residents with a clear understanding of the intentions of the MCA to maintain the tradition of landscape in Marrakesh and what they may expect as standards of service in the areas around their homes and the larger common area. This will also provide a clear and definitive guide to our Director of Residential Landscape as to material and standards.

4. Establish Multi Year Financial Model That Will Ensure Basic Adequacy Of Operational Revenues And Reserves For Both MCC And MCA.

NEED: Marrakesh has what most clubs would consider the ideal ‘business plan”: It has 364 member residences all paying dues and associated fees monthly for both the MCA and the MCC. Since all residential owners are members, and we have adopted a “single membership” concept, the predictability of revenue is quite high. Nevertheless, the issue of pre 2016 residential golf members who may downgrade to social must be addressed.

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While dues and MCA HOA and associated fees are substantially predictable, what is less predictable of course, are the operational costs and the revenues that are provided from member utilization of club services, primarily food and beverage. On the MCA side while adequacy of reserves has increased, the MCA necessarily must predict reserve utilization based on reasonable assumptions of necessary replacement over a multi-year period. The appropriate level of MCA reserves and the clarity of policy of utilization of reserves, or alternatively using assessments, needs to be established. On the MCC side utilization of club services, particularly in food and beverage needs to be reevaluated with consideration of a dues model which incorporates the base operational costs of club services including golf, recreational facilities and food and beverage. This would incentivize utilization of club services, including food and beverage, and allow reductions of charges for member use. STATUS: The Finance Committee completed a thorough study of reserves for both MCA and MCC in 2019. Establishing reserve targets, ensuring clarity regarding the areas of reserve spending, and establishing a dues and assessment structure that supports adequacy in reserves is essential as we move forward. The 2020/21 budget will carry out the recommendation of auditors to establish electronic back up for financial data, making it remotely accessible, ensuring a management plan for coverage should we experience system failure or loss of key personnel. The Finance Committee has begun an extensive analysis of club Food and Beverage cost and operation in order to prepare for the implications of the "new clubhouse" and the new patterns of clubhouse services anticipated. Consideration is being given to alternate F&B pricing models or some variation. Affiliation/ initiation fees have progressively been shifted away from utilization in the operations budget in recent years and will now be allocated to club capital accounts only. MCA and MCC are legally separable entities, regulated under differential California law. Progress has been made in implementing the Auditor’s recommendation that separation of MCC and MCA budgets and operational statements be completed and that is anticipated in next budget year.

5. Restate Importance Of Golf And The Golf Course. NEED: Marrakesh has, what many believe to be, the finest short course in California. “Little Augusta” is an essential feature of both recreation and landscape in a club which is literally centered around golf. Its design and maintenance have been widely recognized as in a class by itself in the Coachella valley. In contrast to many golfcentered communities member utilization of the golf course has increased in recent years and new members indicate that the golf course is one of the top three reasons for choosing Marrakesh. The “short course” character of Marrakesh, that years ago may have been viewed as a limitation, is now widely seen as the future of golf. To ensure that “Little Augusta” continues to draw both players and attention, there are inevitable needed areas of care and improvement. A golf course over a 50-year

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period of time ages through use, compaction, changing mowing and fertilization practices, and vegetative growth and death. Selective application of the Golf Master Plan completed in 2015 is a must along with an intention to improve, not simply maintain the course. While the irrigation system on the golf course was redone in last several years the wells that it relies upon must be monitored carefully for adequacy efficiency. Water restrictions, including well utilization, will likely impact our ability to maintain “Little Augusta” and, therefore, adaptation with proper turf-grass, plantings, and maintenance practices must be considered annually. Ensure continued recognition of golf course as possibly the best maintained in the Coachella Valley. The adoption of the Full Membership policy places a responsibility on us to ensure that our new membership has both access to the golf course but support from members and staff in both playing and improving. Practice facilities are the most obvious limitation in golf facilities at Marrakesh. This can be addressed in part through innovative use of newer golf instruction technology as well as old-fashioned hands-on clinics and lessons, but what is needed is space. Perhaps that space could come from utilization of potential (City) provided Portola/ Haystack parcel to relocate maintenance yard and expand and centralize our short game practice facilities. However it is done, it must be addressed. STATUS: The Golf and Greens Committee has, in recent years, begun to implement the “Golf Course Master Plan” prepared by Cary Bickler, ASGCA in 2015. The committee, together with the Director of Golf, has prioritized the elements of the plan and continues to approach improvements on an incremental basis which falls within the annual budget for same. In the past years, greens have been remodeled, bunkers added and modernized, tee area accouterments were updated, and cart paths rehabilitated. This summer, leveling of selective teeing areas and turf renovation on several holes, limited tree removals and sand bunker improvements are being made. The Marrakesh fairways are planted to Common Bermuda grass. This is the most durable, sustainable and water efficient turf for this climate. The condition and playability of our fairways is and always has been excellent due to the turf type as well and the rigorous efforts of our greens staff. The same is the case for our greens and green aprons. These areas are planted to “328” hybrid Bermuda which is a very fine textured grass and can be mowed at very low cutting heights. This is ideal for the requirements of those areas, particularly when seasonally over-seeded. With this turf, and the current level of maintenance it receives, there is no reason to expect anything but near perfect putting surfaces now and in the future. One major course improvement which must be planned for in the next year or two is replacement of the turf in the teeing areas and green surrounds. Currently, these areas are planted to the same common Bermuda as the fairways. This turf is not optimal when mowed at the low cutting heights required for teeing areas. This grass should be replaced with one of several appropriate types of hybrid Bermuda. This project has not yet been scheduled but the committee will take it up next season.

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Another update to the golf course has been the addition of forward tees. After experimenting with alternatives to locations and distances over the last three years, the committee has determined the best alternatives. These new teeing areas will also receive the same turf updates and markings as the other teeing areas when that occurs. The committee anticipates that the future will bring additional rehabilitation projects such as tree planting, tree removal, more bunker modifications (restoration), irrigation changes, etc. These are part of the committee’s responsibility to ensure that “Little Augusta” always upholds its reputation of impeccable maintenance and enjoyable challenge. Golf operations, under the guidance of the Director of Golf, provide ongoing support to the organized golf groups of MCC. Over the season of 2019/2020 Men’s Golf had 728 players in regular Wednesday events, Ladies Golf had 463 Thursday players, and Nine Holers had 377 Tuesday players. Golf instruction is provided through individual lessons (over 150 in 2019/2020) as well as regularly scheduled play and well-attended clinics. Every new member is personally welcomed by the Director of Golf and provided with an opportunity to play, enhance their game, or learn to play.

6. Prioritize Residential Full Membership. NEED: Marrakesh wisely adopted a single “full” membership policy requiring all residential members taking title after October, 2016 to be “full” members (equivalent to the prior “golf” member category) with no capability to downgrade to social. This ensures that new members will provide a dues revenue stream without disruption and attracts members more likely to be interested in full participation in the amenities of the Club. Since October of 2016 Marrakesh has initiated 100 full resident members. If residential membership were to continue changing at that rate, we would achieve full maturation of full membership withing 7 years. Our younger members are more likely to be Full members but the profile of our current Golf members suggests we are at risk of downgrades to “social” status, with a loss of approx $3000 in annual dues per downgrade. An effort to discourage such downgrades would reduce the risk. Residential Full Membership is the most valuable form of membership both for the Club and the member. Making sure that we do not undercut the value of that membership by effectively discounted arrangements for non-residents and renters is essential. In addition, making sure that non members do not have access to club utilization except thru invitation of a member is critical. STATUS: In recent years there have been three areas of effort to ensure the value of Full Membership and provide greater equity of cost: 1) Non-resident dues have been increased so that non-resident golf dues are essentially equal to resident dues and non-resident social dues have been increased at a higher rate than golf dues 2) Affiliation/Initiation fees for both resident and non-resident have been increased annually to more nearly reflect the true value of membership, anticipating an equalization of affiliation and non-resident initiation fees over time

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3) Residential social dues will increase annually to reduce incentive for remaining golf members to downgrade and to allow the single membership policy to fully mature.

7. Ensure Marrakesh “Friends And Family” Membership Continues. NEED: Policy and process for membership must emphasize welcoming and integrating new members who will be actively engaged in Marrakesh life with understanding of, and commitment to, Marrakesh. Marrakesh CC is a private, invitation only club: Resident and non-resident members must be approved thru Membership Committee review and Board approval. Family orientation may require consideration of some form of Legacy Membership for children of members. Marrakesh has some 40 houses rented at some point over the typical year. Most are rented seasonably for a minimum of one month. There are approximately 10 full year rentals. Marrakesh would be diminished with any larger number of rentals and any development of clusters of rentals owned by a single entity would be particularly unfortunate. STATUS: Membership at Marrakesh has historically been a friends and family, word of mouth process. Prior to 2016 the Board, under then current Bylaws, functioned as the membership committee requiring substantial majority of Board for admission to golf membership. Once the single “full” membership was initiated in 2016, the distinction between golf and social membership for new residents was rendered obsolete. In 2017, the Board authorized the formation of a Club Membership Committee charged with developing a membership process for resident and non-resident members that would ensure a welcoming process that included appropriate vetting and a thorough introduction to Marrakesh and its people during the membership process. Since its inception the Membership Committee has worked very closely with Management, and especially the Coordinator of Membership, to develop the process and the documents associated with membership. That process should be fully realized in the 2020/2021 period. The Board approved the membership sub-category of “Significant Other” in 2020

8. Security And Emergency Planning Must Be Improved NEED: While Marrakesh is fortunate to be in a low crime area its security relies largely on human attentiveness at the gate and a security patrol at night. There is video surveillance at the gate and selected areas at clubhouse but systematic video surveillance along the walls is missing. Gate security through the transponder system must allow us to know who is in Marrakesh at any one point of time, both for simple security and in the event of emergencies. Linkage of individual homes to master Marrakesh security is desirable. Community emergencies, by their nature, are low probability but high impact occurrences. In our case the most likely would be a major 6.8 or higher earthquake. We must presume that this will occur within the foreseeable future. What this requires in

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communications equipment (and use plan), stockpiles of water, food, generators, medical supplies etc. must be assessed and financed. Updated emergency planning must be in place for each of the 14 areas. Planning must be coordinated with state, county, and city plans as well as our neighbor communities. Emergencies often imply power interruption and emerging power storage technology to establish uninterruptible service in computer networks necessary for security and communication should be adopted when feasible. Fire from gas leakage is perhaps the greatest risk to both life and property in earthquake and we must ensure that gas leakage can be minimized. Traffic and road safety can be enhanced thru effective signage and monitoring but increased walking will likely require selective addition of sidewalks. Adequacy of MCA/MCC insurance coverage must be assessed annually. STATUS: An updated Emergency Plan was drafted in 2017 but was not completed. It is anticipated that that plan will be reviewed and completed in 2021. Subsequently the necessity, cost, and storage or stockpiles and a training schedule for members and staff will be developed.

9. Update And Upgrade Communications And Associated Technology In MCA And MCC. NEED: Marrakesh certainly has a “high touch” character with a level of personal service to be envied, but high tech it is not. Fragmented upgrades to systems and networks have created a poor technology environment. What is needed at base is high speed wireless capability throughout. This capability will dramatically increase the efficiency of MCC and MCA services across the board. It will also allow high speed access in every residence, essential for the attraction of younger, still work engaged, resident members. Every pool must also have wireless available. Cell phone coverage is currently not ideal. In addition to high speed wireless, office automation and systems integration will allow compatible data collection, storage, and routine analysis without time consuming manual data digging or special studies. STATUS: It is anticipated in 2021/2022 that we will transition to upgraded and updated.

10. Ensure MCC/MCA Governing Documents Are Up To Date, Internally Consistent,

Compatible With One Another, Consistent With Applicable California Law, And Expressive Of The Interests Of Members. NEED: The principle MCA document, Declarations of Covenants, Conditions, and Restrictions (CCR) has been last reviewed and revised in 2009. Since then major amendments have dealt with the buy-out of the Stewart land lease and modified arrangement with the MLP, and purchase of the golf course and club property (2015), and the creation of a required Full Membership category for Resident Members (2016). These changes impacting both the MCA and the Club in major ways have consequences for Club and MCA Bylaws and the related Rules and Regulations

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documents. All must be reviewed and revised in order to insure consistency with current California laws, clarity, and expression of Board and member intention. STATUS: A Task Group was appointed in 2019 to review the CC&Rs, MCA Bylaws, Rules & Regulations and associated documents with anticipated recommendations in December of 2020. The Task Group has completed their internal review of the CC&R’s; they are now in the hands of the Association’s legal counsel.

11. Restate Commitment To The Landscape Character Of Marrakesh As “Lush And Efficient” With Continued Emphasis On The Highest Level Of Maintenance And Traditional Degree Of Resident Member Preferences In The Areas Immediately Around Homes.

NEED: The site planning and original landscape plan for Marrakesh has long been admired. The proportion and sense of spaciousness and effective privacy afforded the residences is remarkable. While there have been minor changes over the years the original plan for the club, golf course, and residential areas is essentially as it was when Marrakesh was completed in 1976. The greatest challenge facing us in keeping Marrakesh in its original state is the availability and cost of water. Public responsibility as well as water utilization rate schedules encourage and incentivize, higher levels of efficiency. Marrakesh has responded to this in a number of ways, most notably, limited use of desert landscaping on the golf course modeled after Sunnylands in Rancho Mirage. It is attractive and has been well received, but the consensus of members is that the traditional green and colorful landscaping of Marrakesh should be retained. It is also apparent that whatever saving in water utilization has been realized in the desert areas has been offset by the additional labor required to maintain these areas. Presuming that we can achieve substantial increased efficiency of water utilization through a renovated residential irrigation system and that the public policy context does not radically change, there is every reason to believe that a renewed commitment to a lush and efficient traditional Marrakesh landscape would reassure current and new residential members that the landscape they love will remain intact and enhanced in ways consistent with tradition. STATUS: The ALC as noted earlier, will develop an enhanced and focused review of residential landscape plans with a “Lush and Efficient” pallet. A revised plant list is under development and is scheduled for use in 2021.

12. Ensure Governance Structure And Process That Is Responsive To Evolving Needs, Promotes Harmony And Consensus Among Members, Communicates Clearly And Effectively And Provides Continuity Of Governance And Club Goals Thru Board Cycles.

Marrakesh has had a large number of new residential and non-residential members over the last decade but is has maintained a largely self-renewing structure of governance. Thus, while newer members certainly have been included on both Board and Committees the process of incorporating newer members has been slow. In addition, the Board while often accused of recycling former Board members has a nearly 1/3 turnover every year. Since the Presidential term has been effectively one year a change in Board leadership occurs annually. In order to ensure greater linkage to the current membership and greater continuity in both the leadership and the Board,

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year-to-year focus and priority on the MCA/MCC governance structure and process needs consideration and revision. Marrakesh is changing. The factors noted earlier, from changing patterns of club and residence utilization to generational changes in recreational interests, environmental consciousness, standards of dress, food preferences, etc. requires a Board and Management to be in tune with the members. In addition to broad representation on committees and in Club governmental processes, it is essential to routinely assess data from operational records and carry out focused surveys. Attention must be given to the communication technology used in Board meetings to ensure that both Board members and members off site can see and hear one another. Our side of Club and routine communication with members thru bulletins and e-blasts needs reworking. Harmony and working consensus are best accomplished through effective and frequent communication and regular assessment of member satisfaction and perception. Management and Board accessibility to members with concerns is critical. STATUS: The modification of the MCA governing documents and the MCC Bylaws will propose changes addressing continuity of Board leadership and revision of the Board nomination process designed to provide broader membership participation. Revision of Committee charters, completed in 2019, provide limitations on continuous committee service and address committee makeup.

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