Board Meeting Minutes – April 13, 2011
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
April 13, 2011
Board present:
Michelle Lemanski
Marcus Gernes
Morgan Fudge
Rachael Harvey
Chris Ridgway
Steve Paquette
Russell Sheaffer
Matthew Kasinkas
Absent:
Ron Hopfensperger
1. Presentation by RivrCom
Presentation by RivrCom, a local company that provides Wi-Fi service. The company is owned by Consuela Kult and has one partner, Joe Pelletter. Joe is an engineer who formally worked for Qwest Communications. Joe has been installing and servicing WiFi systems since 2004. RivrCom provides 24 hour service. The system used is MikroTik/Routerboard. Joe stated NASA and state departments are replacing their Cisco equipment with MikroTik.
Joe presented how the system would be installed at the marina which included
six access points. The total cost for installation, first year service & maintenance would be $29,500. Service for next year would be $600. He estimated it would take 3-4 weeks from start of installation to complete. He would work with members on Saturdays to setup passwords. Proposal includes training of staff. RivrCom was informed the Board would discuss their proposal and would be in touch with the decision to move forward with the project.
2. Motion by Rachael to call meeting to order, seconded by Russell.
Meeting called to order by Commodore Michelle Lemanski at 7:15 p.m.
More discussion regarding WiFi was conducted. Concern with RivrCom is that they are a one person company and there would not be technical support for the Mikrotik equipment should Rivrcom dissolve. Matthew informed he is waiting on proposals from Paragon and Cisco and expect to have them within two weeks. He also explained the Comcast fees associated with the different equipment and speeds available for WiFi service.
3. Meeting Minutes
Motion by Rachael to approve the March Meeting Minutes as written. Seconded by Russell. Unanimous approval.
4. Committee Reports
Grounds Committee
Steve reported he talked with Gregg regarding decking. It was decided to install a section of the synthetic ash decking to test durability. Per Gregg, the ash product is priced the same as treated lumber. Premier Materials based in the Twin Cities is the manufacturer of the ash product. Premier specializes in marine products. They also offer financing. Gregg will email the company’s website information to Board Members for their review.
Social Committee
Chris informed the boater parties are being revamped to make them more casual. He stated the Ice Breaker will have Bayport BBQ as the caterer in place of Mama Maria’s which will reduce the party costs. Chris stated Kathy has been researching rental companies to reduce costs as well. Gregg stated he priced tents for purchase and found it would cost $4,000-$5,000 plus additional costs for weights, tie-downs, etc. He added there would be the issue of storing the tent as well as having Marina staff setup and teardown.
Chris stated the dates for the other parties have not been confirmed but will work with Kathy in planning the other events. Board members discussed having a “social” around the Annual Meeting. It was decided to have wine and cheese or desserts for the evening.
Finance Committee
Rachael commented operational expenses are down. Gregg informed a separate ledger account was established for flood expenses. Todate only $400 was spent on the predicted flood. Rachael informed the line of credit has been established at First State Bank and Trust. The new checking account has been opened as well. Morgan informed he has had conversation with Shawn at Feltl regarding high-yield savings accounts. He stated most accounts available are only paying in the 1-1/2% range.
Gregg presented the Directors/Officers Liability Insurance is up for renewal May 1. In his conversation with Steve at Wells Fargo Insurance, it was recommended that the current policy of $1,000,000 be increased to $2,000,000. The annual premium for the $1M policy is $1,605 and a $2M policy is $2,720. Morgan requested a copy of the policy be emailed to all Board Members for review of the language and coverage before making the decision on increasing.
Gregg informed the payroll services have been moved to PayChex. The administration of the 401k plan is also being moved to PayChex, thus, eliminating the middle-man servicing by TransAmerica and GoldLeaf. Shawn at Feltl will continue to be the advisor for the plan. Gregg informed it was discovered the company match for 2010 had not been made to the employee accounts. The Board directed that this be paid as soon as possible.
5. General Manager
Michelle informed Gregg has made the decision to retire in March 2012. She contacted a recruiter in Florida who specializes in marina recruitment. The recruiter found three candidates that were suitable for Bayport Marina. The best candidate refused the position as he did not want to move from Florida to Minnesota. The second candidate did not have marina experience but did have hospitality experience. The third candidate was living in Arizona and working as a manager of a copper mine. This candidate would require BMA to pay his relocation costs. Locally, Michelle found two candidates – one from Minnetonka who ran the service department for Mahogony Bay. The other candidate has worked in the marina business all his life. Michelle explained the process used for screening candidates. She reviewed resumes and if the candidate fit BMA’s needs, she passed it along to Russell who conducted a phone interview. From the phone interviews, Russell presented the candidates to have a personal interview. The in-person interviews were performed by Michelle, Russell, and Matthew. After interviewing the two local candidates, the best candidate was Cliff Lewis, owner of Cross Country Transport. Cliff’s background included Erickson Marine and the service manager for King’s Cove. For the past several years, he was owner of Cross Country Transport. He is in the process of turning the business over to his son and wife. Michelle stated Cliff’s personality is a “no nonsense approach” much like Gregg’s. The background check on Cliff was flawless. Michelle further stated she received three letters of recommendation for Cliff that were glowing. The question was presented how the local candidates heard about the GM opening. Michelle informed they heard about it through her husband at the boat show. Rachael stated she has known Cliff for 30 years and he is very knowledgeable – can ask him anything about boats and he has the answer. Marcus suggested the entire board meet Cliff and assess his qualifications. Michelle informed that according to the By-Laws, the Commodore has the authority to make the decision on hiring but that she would like the Board to vote to approve. Morgan asked if an offer had already been extended to Cliff. Michelle stated she had and his start date is set for June 1. She further stated Cliff will be subject to a one-year employment agreement that will allow the Board to terminate without cause. He will also be reviewed on a 3 month, 6 month and annual basis. Objection to the hiring process was expressed. Michelle recommended having a “meet, greet, and walkaround” on a Saturday morning so Cliff could be introduced.
6. Group 41/Scanlon
Michelle reiterated the Scanlon lawsuit is gone and done. There has been no word from Group 41’s attorney. She stated Group 41 has an active listing for leasing the property, but it is not for sale. At this point, it is a waiting game to hear back from Group 41’s attorney.
7. Financials
Michelle gave an overview of the financials. She reported gas and diesel were prepaid this year vs. buy as you use in previous years. Workers Compensation Insurance was reduced by $15k by moving to a different carrier. Michelle explained by taking out the depreciation, there is a net income of $12k for the month of March.
Gregg has tried to contact Ron with Midwest Yacht to see if it is his intent to continue leasing the office space. He has not connected but will continue to try.
Mike Mullen, CPA, will be coming to meet with Kathy to recalculate depreciation and to perform the audit and file the Marina taxes.
8. Bonus/Pay Structure
Russell presented the Bonus/Variable Compensation program implemented to generate an incentive for good behavior and generate service sales. Marcus requested all 9 staff be put in Russell’s grid to view at next meeting and to vote on the plan at the meeting. Russell stated if staff hit plan, they will essentially be given the same bonus they had received in the past. If above plan, staff will share in the revenue generated by the additional service growth.
Gregg informed staff have not been given merit increases. He stated generally they are given at the first of the year following performance reviews. Motion by Steve to verify the percentage increase used in the 2011 budget for merit increases and allow Gregg the authority to allocate as he sees fit. Motion seconded by Marcus. Unanimous approval.
9. By-Laws
Kathy to send the By-Laws to all Board Members for them to review. They were instructed to bring their comments to the next meeting. It is the goal to have the revised By-Laws completed and present to members for vote at the Annual Meeting June 8. Marcus will review and research the language with regards to the process for hiring and termination of key personnel.
10. Spring Launch
Water level is going down and anticipate launching on Monday, April 18.
11. June Elections
There are three vacancies to be filled in June. Four members have expressed their desire to serve on the board: Val Fuller, Don Will, Jim Mondry, and Michelle Lemanski. Their names will be included on the ballet to be mailed by the 20th.
12. Other
Gregg presented an estimate to the Board for painting the exterior of all the Marina buildings. The last time painting was done was 2004 at a cost of $9,000. The estimate received from the same contractor, Chamberlin Painting, was $9,800. Motion by Rachael to accept the proposal and have the painting completed in the 2011 boating season. Seconded by Matthew. Unanimous approval.
Gregg suggested having a raffle for the Ice Breaker Party. Consensus of members was to have door prizes instead. Also recommended to request donated gift certificates from our vendors.
Michelle inquired if We Dig Plants had responded with an estimate for landscaping improvements. Gregg will contact them.
Kathy has enrolled Bayport Marina as a member of both the Hudson Chamber of Commerce and the Stillwater Chamber of Commerce.
Meeting set for next Thursday, April 21, at 5:30 to do a “meet, greet, and walkaround” . This will be the time Cliff is formally introduced and a walkaround of the grounds will be conducted to assess capital improvement needs.
Motion by Matthew to adjourn the meeting, seconded by Marcus. Meeting adjourned at 9:20 p.m.
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